AMC’s stock plunges more than 19% after filing for ‘at the market’ sale of up to $350 million in common shares

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AMC is locked in a battle to reduce its debt load

Shares of AMC Entertainment Holdings Inc. plunged 19.6% 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 AMC, -16.84% said that it intends to use the proceeds from the sale to bolster liquidity; to repay, refinance, redeem or repurchase its existing debts; and for general corporate purposes., and 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.AMC’s stock has fallen 77.5% in 2023, compared with the S&P 500’s SPX gain of 14.2%.

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AMC stock plunges 19.5% after filing for ‘at the market’ sale of up to $350 million in common sharesJames Rogers is a Financial Columnist for MarketWatch.
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