Top movers | What's the end of AMC's dilution? Stock sale led to plunge of AMC and SNAP
1. $AMC Entertainment(AMC)$ plunged another 30% on stock sale news
After the company’s reverse stock split, the news of 40 mln shares sale led to a sharp decline in the company's stock price, with AMC shares closing down 37%, reaching new all-time lows.
1) AMC completed reverse split and stock conversion, settled lawsuit last week
Last week, AMC Entertainment Holdings, the movie theater company, took several significant actions to address its financial situation. These actions included a 10-for-1 reverse stock split, converting $Eagers Automotive Ltd(APE.AU)$ units into $AMC Entertainment(AMC)$ shares, and settling a shareholder lawsuit.
2) AMC plans to sell 40 mln shares to improve liquidity
Following these moves, AMC promptly filed a prospectus and said it plans to sell up to 40 million new shares to raise cash, with the aim of improving liquidity and refinancing and repaying loans.
AMC is burdened with a substantial debt load of $9.5 billion and ongoing challenges due to the pandemic's impact on its business.
In the filed prospectus, AMC warned potential investors about the risks involved and cautioned them against purchasing new shares, stating that there is a substantial risk of losing their investment.
r/wallstreetbets - King of dilution strikes again
2. $Snap Inc(SNAP)$ fell near 8% as the company Chief Legal Officer sold 13,000 shares
On Wednesday, the stock price of $Snap Inc(SNAP)$ fell 7.93% and closed at $9.63.
Prior to this, the company's Chief Legal Officer, Michael J. O'Sullivan, sold 13,000 shares of common stock on August 31st at an average price of $10.3296 USD per share, with a total value of approximately $134,300 USD.
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