AMC Secures $250 Million in Stock Sale, Shares Surge Amid Meme Frenzy
AMC Entertainment has capitalized on the latest surge in meme stock activity by completing a stock sale that raised approximately $250 million. The company sold 72.5 million shares at an average price of $3.45 each. The sale was part of an at-the-market equity offering, and the timing coincided with a notable uptick in trading volume and price, with AMC shares more than doubling and closing up 78% on Monday. This comes after the company had announced its intent to conduct the offering on March 28.
The resurgence of interest in meme stocks like AMC and GameStop is attributed to the re-emergence of "Roaring Kitty," a key influencer from the 2021 meme stock phenomenon. GameStop shares also experienced a dramatic increase, with a 74% rise on Monday and premarket trading figures suggesting a further surge of over 130%.
The proceeds from AMC's stock sale provide the company with additional capital as it continues to recover from the impacts of the pandemic. Analysts note that AMC is working to address its $4.6 billion debt and improve its financial situation. The share sale was facilitated by Citigroup Global Markets, Barclays Capital, B Riley Securities, and Goldman Sachs & Co. The increased capital and investor interest signal a moment of opportunity for AMC, which is also seeing a narrowed loss in earnings per share compared to the previous year.
