May 14, 2024 - Business

AMC sells $250M in shares, riding sudden meme stock surge

The AMC logo at a popcorn stand

A concessions stand at an AMC movie theater in New York on Feb. 5. Photo: Bing Guan/Bloomberg via Getty Images

AMC Entertainment raised another $250 million from a stock sale, tapping into a sudden meme stock resurgence.

Why it matters: Meme stocks like GameStop and AMC skyrocketed Monday, amid speculation the WallStreetBets titan Keith Gill — known to fans as "Roaring Kitty" and "DeepF---kingValue" — was returning.

Driving the news: The theater chain said Tuesday in a public filing that it reaped about a quarter of a billion dollars from an equity offering completed Monday.

  • The company sold 72.5 million shares for an average of $3.45 in a sale it announced March 28.

The impact: Investors don't appear concerned about their shares being diluted.

  • AMC shares were up 121% to $11.45 in pre-market trading Tuesday.

Zoom in: AMC has been swimming in losses and debt since the pandemic erupted in 2020, temporarily shutting down movie theaters.

  • Last week the company posted a first-quarter loss of $163.5 million.
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