The company entered a securities purchase agreement to sell more than 95 million shares to institutional investors, with the deal expected to close Wednesday. AMC engaged Roth Capital Partners as the placement agent, agreeing to pay a 5.5% cash fee based on the aggregate gross proceeds of the sale.
In section Market Quotes
AMC Shares Slide as New Offering Undercuts Market Price
Shares of AMC Entertainment Holdings plummeted 18% to $2.26 in premarket trading Tuesday after the company revealed a new stock offering priced at $2.10 per share. This move effectively devalued the theater chain’s equity relative to Monday’s closing price, cooling a rally that had seen the stock climb 77% this year.
Management expects the transaction to generate approximately $189 million in net proceeds. These funds are earmarked primarily for debt reduction, with $125.5 million designated to pay down existing liabilities. Despite the sharp premarket drop, the company remains focused on leveraging this capital infusion to improve its balance sheet stability.
Comments (0)
No comments yet. Be the first!