AMC Entertainment Holdings
stock dropped Thursday after the movie-theater chain filed to offer up to $350 million of stock.
AMC
(ticker: AMC) said in a filing Thursday it would sell the shares in an at-the-market offering.
Shares of AMC were down 10% to $9.08.
“We intend to use the net proceeds, if any, from the sale of our Class A common stock offered by this prospectus supplement to bolster our liquidity, to repay, refinance, redeem or repurchase our existing indebtedness… and for general corporate purposes,” the company said in the filing.
This is not the first time AMC announced it was selling stock this year. The company announced in September that it had entered into an agreement to sell up to 40 million shares of class A common stock.
AMC has been selling stock to raise money to help pay off its debts garnered before and during the pandemic. To ensure further stock sales, the company completed a reverse 1-for-10 stock split over the summer to reduce the number of AMC shares outstanding.
Prior to announcing the stock sale, AMC on Wednesday reported third-quarter financial results that beat Wall Street expectations on the success of movies Barbie and Oppenheimer.
Write to Angela Palumbo at [email protected]
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