Shares of AMC Entertainment Holdings Inc. AMC, -19.62% plunged 19.5% in premarket trades Thursday after the movie theater chain and meme stock darling filed for an “at the market” sale of up to $350 million in common shares. In an SEC filing AMC said that it intends to use the proceeds from the sale to bolster liquidity, repay, refinance, redeem or repurchase its existing indebtedness and for general corporate purposes.
AMC is locked in a battle to reduce its debt load and the company’s CEO Adam Aron has repeatedly warned that the company faces liquidity challenges. In September, AMC announced the completion of an at-the-market equity offering, raising approximately $325.5 million. The company swung to profit and reported positive net income for the second straight quarter in its third-quarter results, released after market close Wednesday. The company ended the quarter with cash of $729.7 million.