Name: AMC stock tumbles as company files to offer $350M in stock
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AMC stock tumbles as company files to offer $350M in stock

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Skip to contentAMC (AMC) stock is tanking. And once again, it has to do with investor fears about their shares being diluted.On Thursday, the movie chain filed to offer up to $350 million in stock.AMC said in the filing that it would use the funds to “bolster liquidity, to repay, refinance, redeem or repurchase its existing indebtedness (including expenses, accrued interest and premium, if any) and for general corporate purposes.”Shares fell as much as 20% on the news, before paring some of their losses.AMC shares had already sold off earlier this year over investor fears about share dilution. The stock fell about 20% in September when AMC announced it planned to sell up 40 million shares.In August, a Delaware court approved a merger between AMC and AMC preferred shares that made all outstanding shares AMC common stock. AMC also executed a 10-for-1 reverse stock split at the time. AMC CEO Adam Aron previously said the stock conversion was crucial to AMC having proper cash balances in 2024 and 2025.“AMC should now be able to raise additional equity capital,” Aron wrote in a letter to investors following the court approval.The stock issuance moves on Thursday overshadowed what Wall Street read as an overall positive earnings report on Wednesday night as well as any potential tailwinds from the end of the SAG-AFTRA labor strike.AMC’s $0.09 loss per share was narrower than the $0.20 loss that the Street had expected while the company’s revenue came in at $1.41 billion, above estimates for $1.26 in revenue.Aron said on the company’s earnings call that AMC wouldn’t reveal the material impact from the Beyonce and Taylor Swift movies until the fourth quarter earnings call.“For what it’s worth we did very well,” Aron said. “We’re going to make a handsome profit from having facilitated what was in stadium concert tour, getting it converted to film, and getting it in theaters quickly.”Josh Schafer is a reporter for Yahoo Finance.Click here for the latest stock market news and in-depth analysis, including events that move stocksRead the latest financial and business news from Yahoo FinanceReferenceGregory Daniels is your guide to the latest trends, viral sensations, and internet phenomena. With a finger on the pulse of digital culture, he explores what’s trending across social media and pop culture. Gregory enjoys staying ahead of the curve and sharing emerging trends with his readers.Denial of responsibility! Pedfire is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – . We will take necessary action within 24 hours.AboutContactPrivacy PolicyCookie PolicyTerms of USEDisclaimerDMCA© 2023 Pedfire. All Rights Reserved. Website Design and Created by Team Pedfire

Skip to contentAMC (AMC) stock is tanking. And once again, it has to do with investor fears about their shares being diluted.On Thursday, the movie chain filed to offer up to $350 million in stock.AMC said in the filing that it would use the funds to “bolster liquidity, to repay, refinance, redeem or repurchase its existing indebtedness (including expenses, accrued interest and premium, if any) and for general corporate purposes.”Shares fell as much as 20% on the news, before paring some of their losses.AMC shares had already sold off earlier this year over investor fears about share...

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AMC stock tumbles as company files to offer $350M in stock

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