AMC said it plans to use the money from the stock sale for “general corporate purposes,” which may include paying down existing debt and acquiring theater assets.
AMC Entertainment said Thursday it plans to sell more than 11 million shares amid the trading frenzy in its stock.
“In accordance with the terms of the Distribution Agreement, we may, through our sales agents, offer and sell from time to time up to an aggregate of 11,550,000 shares of our Class A common stock,” AMC said in a SEC filing.
Shares in the company dropped 7% shortly after markets opened Thursday before the NYSE halted the stock for volatility. AMC shares were up more than 20% in premarket trading before news of the stock sale.
AMC Entertainment had garnered considerable attention from WallStreetBets traders in recent weeks, pushing the stock up nearly 140% this week to an all-time high of $62.55 on Wednesday.
AMC is up 512% this quarter and a whopping 2,850% this year. The company’s market value has risen to above $31 billion.
“We believe that the recent volatility and our current market prices reflect market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last,” AMC said in the filing. “Under the circumstances, we caution you against investing in our Class A common stock, unless you are prepared to incur the risk of losing all or a substantial portion of your investment.”