What’s Going on with AMC Entertainment Holdings?
It was reported today, June 3, that AMC Entertainment Holdings (AMC) plans on selling more of its stock. In an SEC Form 8-K, the firm notified investors that it will be selling 11,550,000 shares of Class A common stock.
Yesterday, June 2, at market close, AMC shares skyrocketed by 95.22%, hitting $62.55 per share. Today, in pre-market trading, shares have dipped by 1.89%, dropping to $61.37 per share.
What Does This Mean for AMC?
On June 1, just after the holiday weekend, AMC Entertainment Holdings revealed that the company had raised $230.5 million of new equity funds from Mudrick Capital, which may account for yesterday’s gains. Today, the company announced B. Riley Securities, Inc. and Citigroup Global Markets Inc. will act as sales agents for the sale of 11,550,000 more shares of Class A common stock.
The prospectus also contains an update on the risks and market volatility potential investors in AMC could be exposed to. “The market prices and trading volume of our shares of Class A common stock have recently experienced, and may continue to experience, extreme volatility, which could cause purchasers of our Class A common stock to incur substantial losses. For example, during 2021 to date, the market price of our Class A common stock has fluctuated from an intra-day low of $1.91 per share on January 5, 2021 to an intra-day high on the NYSE of $72.62 on June 2, 2021 and the last reported sale price of our Class A common stock on the NYSE on June 2, 2021, was $62.55 per share…”
AMC went on to affirm that the company does not believe recent share volatility or current market price variances reflect or have anything to do with the underlying business fundamentals of AMC or its operations.
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AMC Entertainment Holdings Inc is involved in the theatrical exhibition business. It owns, operates or has interests in theatres located in the United States and Europe. It provides best-in-class amenities such as plush, power recliners, MacGuffins full bars, AMC Dine-In Theatres, premium presentation. The group operates in U.S. markets and International markets.