Takeaways
- AMC Entertainment announced another stock sale to shore up the struggling movie theater chain's finances, and shares sank.
- The company said it would offer $350 million dollars of stock in the offering.
- The news came a day after AMC reported better-than-expected results, fueled by demand for tickets to the 'Barbie' show and "Oppenheimer" blockbuster summer movies.
Shares of AMC Entertainment Holdings (AMC) plunged more than 13% on Thursday after the struggling movie theater chain announced a new stock sale to raise needed cash.
AMC indicated that It would put up to $350 million of its Class A shares in an “at-the-market offering.”
The company explained in a regulatory filing that it intended to use the money raised “to strengthen our liquidity, to repay, refinance, repurchase or repurchase our existing debt (including expenses, accrued interest and premiums, where applicable) and for general business purposes. »
This is the second time in two months that AMC has decided to sell shares to strengthen its finances. In early September, it grossed $325 million after selling 40 million shares at an average price of $8.14 per share.
Less than a month before that, the company launched a 1-for-10 reverse stock split as part of another effort to raise capital after CEO Adam Aron warned that the Raising new equity capital in the short term was “business critical”.
News from new stock The sale came a day after AMC reported better-than-expected quarterly results, benefiting from summer movie blockbusters “Barbie” and “Oppenheimer.”
The actions of AMC Entertainment lost three-quarters of its value this year. “/wp-content/uploads/2023/11/fe69c329ad2fb0751584ba303f98dd91.png” />
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Source: investopedia.com