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

on Sep 6, 2023
  • 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.

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

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AMC to sell millions of new shares

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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?

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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.


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