AMC reveals plans of a share sale – its stockholders are not happy

By:
on Sep 6, 2023
Listen
  • AMC Entertainment plans on selling up to 40 million new shares.
  • It will use net proceeds from the sale to bolster liquidity.
  • AMC shares ended more than 35% down on Wednesday.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

AMC Entertainment Holdings Inc (NYSE: AMC) ended more than 35% down today after revealing plans of a share sale.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

AMC to sell millions of new shares

Copy link to section

The cinema chain wants to sell up to 40 million shares from time to time to raise new capital, as per its filing with the Securities & Exchange Commission on Wednesday.

Last month, the Leawood-headquartered firm announced a settlement that allowed it to convert its preferred stock into common shares – following which it was broadly expected to sell new shares.

The stock market news arrives about a month after AMC Entertainment reported its best quarterly results since the pandemic that far exceeded the Street estimates.

Note that this meme stock touched a high of $67 in the final week of February 2023.

How does AMC plan on using the new capital?

Copy link to section

AMC named Goldman Sachs, Barclays, Citigroup, and B. Riley Securities as sales agents for its “at-the-market” offering. Its filing with the SEC also reads:

The Company intends to use the net proceeds, if any, from the sale … to bolster liquidity, to repay, refinance, redeem or repurchase its existing indebtedness and for general corporate purposes.

Last week, the New York listed firm partnered with Taylor Swift to bring a concert film of her “The Eras Tour” to thousands of movie theatres in North America.

On the flip side, though, it’s having a hard time as the Hollywood strikes continue to spell uncertainty for the U.S. movie business not just for the remainder of 2023 but for 2024 as well.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
USA Leisure & entertainment Media North America Stock Market World