AMC Up in Premarket After Raising $325.5M by Selling 40M Shares

https://tokenist.com/amc-up-in-premarket-after-raising-325-5m-by-selling-40m-shares/

AMC Entertainment's stock soared over 8% in premarket trading following the successful completion of its at-the-market (ATM) equity offering. The movie theater giant managed to rake in $325.5 million by offloading 40 million shares at an average price of $8.14 each. This financial shot in the arm comes at a crucial time for AMC, which has been grappling with liquidity concerns. The capital infusion also aligns with a 39% annual uptick in the industry's box office and AMC's monetization of the blockbuster 'Taylor Swift: The Eras Tour' film.

However, the fundraising move hasn't been without its share of controversy. AMC's financial strategy has been under scrutiny ever since it became a 'meme stock' in 2021. Retail investors fueled a frenetic price surge, prompting AMC to issue new equity at the height of the frenzy, raising $587 million. Subsequent legal battles over a proposed conversion of AMC Preferred Equity units (APEs) and a reverse stock split complicated the company's efforts to stabilize its share price. This latest share offering follows a year in which AMC's stock price plummeted, erasing nearly 90% of its value. In spite of the past volatility and the risks flagged by AMC itself, the successful ATM equity offering suggests that investor enthusiasm for the company remains resilient.