moonzo
2023-11-10

$AMC Entertainment(AMC)$

Let's go through this once more time...

AA has to file and disclose (to stay within the law) any possibility of offering shares even if he decides not to. It allows him to do so if he sees fit. They may do it if they choose all at once or scattered amounts from time to time.

Now AMC currently has $750m in cash. They don't need money right now.

If they wanted to tho they could...

i) offer shares and use proceeds to retire debt = strengthening value of the company = increased stock price

ii) offer shares at market value during a squeeze (maybe at $1000 per share) and thus only have to give up 350,000 shares instead of 35,000,000 shares at $10 to get the same $350m they filed for = a lot of $ for little shares given up

Is anybody getting the beauty of all this??

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment