To The Moon

Shares of AMC Entertainment fell sharply after the theater chain said in a filing that it plans to sell up to 40 million new shares to raise cash.

The stock dropped 36.8%, bringing it to $8.62 per share. On a split-adjusted basis, that is AMC’s lowest close on record, according to FactSet.

AMC was widely expected to sell additional shares after the successful conversion of the preferred APE shares into AMC common stock in August. It followed the settlement of a lawsuit objecting to the move.

The theater chain sold millions of shares of common stock in recent years after becoming one of the so-called meme stocks popular with retail traders. The sales helped AMC stabilize itself after the Covid pandemic effectively halted the theatrical movie business.

However, AMC used up its allotment of stock and needed shareholder approval to issue more. The company issued the preferred APE shares as part of a strategy to change its corporate voting structure and get shareholder approval to sell additional common stock.

AMC said that it will sell the new shares through “at-the-market” offerings, without a specific time frame. Citigroup, Barclays, B. Riley Securities and Goldman Sachs are listed as sales agents in the filing.

The U.S. movie business remains below pre-pandemic levels, and the ongoing strikes in Hollywood have clouded the release slate for the rest of 2023 and 2024.

I am glad I bought in when it was already low, didnt sell when it peaked (namely because it would have been a few hundred bucks) if it crashes I have a tax writeoff.

These people who have six figures invested, I feel bad for them. The execs are looking to milk these investors more. Not calling for its death but the actions of Adam Aron have been against the shareholders and continues to dilute the stock while he continues to sell his own shares. $AMC Entertainment(AMC)$

Downward red business chart with arrows on blurry background. Crisis, recession and financial failure concept. 3D Rendering.