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AMC Entertainment Holdings, Inc. on Thursday announced plans to sell up to 11.55 million shares, leading to wild fluctuations in its stock price.
Hours later, the movie theatre company said that it completed its “11.550 million share at-the-market (ATM) equity program” launched earlier in the day, raising about $587.4 USD million of new equity capital. Shares were sold at an average price of approximately $50.85 USD per share.
AMC President and CEO Adam Aron said that the move helped strengthen the company.
“Bringing in an additional $587.4 million USD of new equity on top of the $658.5 million USD already raised this quarter results in a total equity raise in the second quarter of $1.246 billion USD substantially strengthening and improving AMC’s balance sheet, providing valuable flexibility to respond to potential challenges and capitalize on attractive opportunities in the future.”
Read more about AMC rides stock roller-coaster after $587-mn share sale to cut debt load on Business Standard. The stock traded at $48.51 as of 4:02 a.m. in New York premarket trading, down 5.5% from its last close.
Bullish options bets that would profit if AMCs shares traded in the $40 to $70 range drew a huge influx of buying in recent days, with millions of contracts changing hands as the movie theater chains stock price rose by as much as 178% this week.
AMC Entertainment Holdings Inc. (NYSE: AMC) CEO Adam Aron said that the move theatre chain’s equity sale on Thursday strengthens the company, but his .