AMC Entertainment announces another stock sale, and shares tumble

The Key Takeaways

• AMC Entertainment has announced that it will be holding another stock offering, this time through Goldman Sachs.
• Theater chain operator says it will use money for debt repayment and upgrading its locations.
• The move was just the latest of a number that the popular meme stock has made to improve its financial situation.

AMC Entertainment shares dropped nearly 10% when AMC announced another sale of stock to raise cash.

In a filing with the Securities and Exchange Commission, Goldman Sachs stated that they would offer up to 50,000,000 shares. “at any time and from time to time.”

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

Recently, several measures have been taken to strengthen the financial standing of this company that was at the forefront of the meme-stock craze in 2021. There were several stock swaps as well as debt-forequity exchanges. In the summer of 20,23, AMC Preferred Equity shares will be converted to common stock and a reverse stock split 1:10. 

AMC Entertainment stock and other meme stocks soared in value yesterday after a popular figure of the Meme movement became a star. “Roaring Kitty” (a.k.a. Keith Gill posted another cryptic photo on X. It was the first appearance on social media since September. The shares lost almost a quarter in value with today’s sale.

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