AMC Entertainment, which is riding a wave of retail enthusiasm for its meme-worthy stocks, has decided to cash in and sell 11.6 million shares.
Exhibitor No.1 announced the plan this morning in an SEC filing. Shares of the company, which had surpassed $ 60 per share this week, giving the once nearly bankrupt company a market value of $ 28 billion, sold early today. Almost an hour into the trading day they were at around $ 50, down 20%.
There are now around 3 million retail investors in AMC – around 80% of its shareholders – after investors rallied on Reddit and other online forums. The company’s shares have followed the unlikely trajectory of GameStop and other companies whose stocks move in inverse proportion to their finances. Regulators on Wednesday halted trading twice on AMC as it skyrocketed.
In its filing, AMC said it would use the proceeds of the sale for “general corporate purposes, which may include repayment, refinancing, repayment or redemption of existing debt, acquisition of assets. film, working capital or capital expenditures and other investments “.
Earlier this week, the company sold 8.5 million shares to investment firm Mudrick Capital, which turned around and sold the position for $ 230 million on the same day. While the whip saw action shakes the heads of many Wall Streeters, CEO Adam Aron described the stock sale as a “very smart fundraiser so that we can grow this business.”
The stock market drama takes place against the backdrop of a revitalized North American box office, which has seen A Quiet Place, Part II and Cruel post strong opening weekends over Memorial Day.