Original:
AMC Entertainment (
AMC) - Get Report shares fell sharply Thursday after the group said it plans to sell around $800 million in shares though an open market program and cautioned investors against purchasing them unless you are prepared to incur the risk of losing all or a substantial portion of your investment.
In a Securities and Exchange Commission filing published Thursday, AMC said it would look to sell 12 million class A common shares through B. Riley Securities, Inc. and Citigroup Global Markets from time to time, through an “at-the-market” offering program.
AMC raised around $430 million from the sale of 43 million shares into the open market in early May, at $9.94 each. It also sold 8.5 million shares directly to Mudrick Capital earlier this week, with the hedge fund immediately flipping the shares into the open market after reportedly citing them as overvalued .
AMC Entertainment surges to a fresh record high as the meme stock favorite unveils an investor tool that could give the group s 3 million shareholders significant influence over the world s biggest movie theater chain.
AMC Entertainment shares soared past $70 Wednesday, hitting a fresh all-time high that values the world s biggest movie theatre chain at more than $30 billion, as the latest meme stock trend continues to grip Wall Street.
AMC, in fact, surged 35.6% yesterday with 600 million shares in volume against an outstanding float of just 500 million and accounted for around 11% of total NYSE volume as Cramer praised CEO Adam Aron s great work with the movie theatre chain and its pending slate of blockbuster films that should power ticket sales as pandemic restrictions are lifted in states around the country.
Beyond meat, Cramer argues, fits perfectly into the r/wallstreetbets investment thesis: it s run by a talented CEO in Ethan Brown, it s poised for expansion based on recent product deals with the likes of McDonald s and Yum! Brands and short interest in the stock remains elevated at 25.2% of the outstanding float.