AMC Entertainment announces another stock sale and shares fall

• AMC Entertainment announced it would conduct another stock sale, offering 50 million shares through Goldman Sachs.

• The cinema chain operator said it would use the money to pay off debts and upgrade its sites.

• It's the latest in a series of moves the meme stock favorite has recently taken to shore up its finances.

AMC Entertainment (AMC) shares fell nearly 10% on Friday as the operator of the struggling theater chain announced another stock sale to raise needed cash.

The company wrote in a regulatory filing that it would offer up to 50 million shares through sales agent Goldman Sachs (GS), which it will issue or sell “at any time and from time to time”.

AMC said it would use the proceeds to repay, repurchase or refinance its existing debt and to invest in its core business to upgrade movie theaters, including “an increase in the number of branded premium large format screens.”

The company, which has become one of the favorites of meme stock the craze of early 2021, has taken several steps to consolidate its financial situation in the recent past. Among them, several stock sales And debt-for-equity swapswith a 1 for 10 consolidation of shares in the summer of 2023 after converting AMC Preferred Equity shares into common stock.

AMC Entertainment Stock flew away yesterday with other meme stocks when a hero of the movement, “Roaring Kitty” (aka Keith Gill)posted another cryptic photo on X, the first time he has appeared on the social networking site since September. With today's selloff, stocks have lost nearly a quarter of their value this year.

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