AMC ( AMC ) Entertainment stock rose more than 20% on Wednesday morning after the movie chain announced. It plans to sell up to 40 million shares.
The company said it plans to use the proceeds to “increase liquidity, pay down, refinance, retire or buy existing debt” and for general corporate purposes.
Investors anticipated the stock sale following a court-approved settlement last month that allowed the company to convert AMC’s special preferred shares, (APE) units, into AMC common stock.
“AMC should now be able to raise additional equity capital,” AMC CEO Adam Aaron wrote in a letter to investors following the court’s approval. Shares underwent a 10-for-1 reverse split in August prior to the conversion.
AMC, known as the original flagship meme stock, has played with vocal support from retail investors since 2021. The company was challenged by the pandemic shutdown, and has tried to reinvent itself more like a traditional theater chain in the streaming era. Home videos.
Last Thursday, AMC later rose as much as 9 percent. The company announced Concert footage of Taylor Swift’s Eras tour, coming October 13th.
In July, AMC had an opening weekend for “Barbenheimer.” The double feature pairing of “Barbie” and “Oppenheimer” produced AMC’s best one-day performance since before the pandemic.
AMC reported revenue of $1.35 billion for the most recent quarter, topping analysts’ estimates of $1.29 billion. The company’s earnings of $0.00 also beat the Street analysts who expected a loss of $0.04 per share.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on Twitter @ines_ferre.
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