In a new filing, AMC Entertainment announced its plans to sell 40 million new shares in order to generate cash flow.
AMC’s stock allotment dried up following its Pandemic-era meme stock frenzy, causing the company to seek shareholder approval to issue more stocks at-price.
As a result of the announcement, AMC’s stock plummeted 36.8% on Wednesday.
According to FactSet, this is AMC’s lowest split-adjusted close on record.