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Key Takeaways
- AMC Entertainment announced it would have another stock sale, offering 50 million shares through Goldman Sachs.
- The theater chain operator said it would use the money to pay off debt and upgrade its locations.
- It was the latest in a series of steps the meme stock favorite has taken recently to boost its finances.
AMC Entertainment (AMC) shares sank nearly 10% Friday when the struggling theater chain operator announced another stock sale to raise needed cash.
The company wrote in a regulatory filing that it would be offering 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, 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.”
The company, which became one of the favorites of the meme stock craze of early 2021, has taken several steps to shore up its financial position in the recent past. Among them, several stock sales and debt-for-equity swaps, along with a 1-for-10 reverse stock split in the summer of 2023 after converting AMC Preferred Equity units into common shares.
Shares of AMC Entertainment soared yesterday along with other meme stocks when a hero of the movement, “Roaring Kitty” (a.k.a. Keith Gill), posted another cryptic picture on X, the first time he has been on the social media site since September. With today’s selloff, the shares have lost nearly a quarter of their value this year.
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