United

Million

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 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
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<p class="has-drop-cap">Popular US theater chain AMC Entertainment Holdings has entered into an equity distribution <a aria-label="agreement (opens in a new tab)" href="https://www.streetinsider.com/Corporate+News/AMC+Entertainment+%28AMC%29+Announces+40M+Share+Offering/22130363.html#:~:text=AMC%20Entertainment%20(NYSE%3A%20AMC),.%20and%20Goldman%20Sachs%20%26%20Co." target="_blank" rel="noreferrer noopener nofollow" class="deco-link">agreement</a>, announcing its decision to sell 40 million shares. The news has negatively impacted the price of AMC stock, which dropped 19% on the market opening.</p> 
<h3 id="amc-files-prospectus-to-sell-40-million-shares">AMC Files Prospectus to Sell 40 Million Shares</h3> 
<p>AMC Entertainment is exploring new ways to stabilize the firm’s entrepreneurial proceedings. The company filed a new prospectus today detailing its interest in selling 40 million shares to four leading corporate giants.</p> 
<p>The filings later revealed that the firm has entered into an equity distribution agreement with Citigroup Global Markets, Barclays Inc., B Riley Securities, and Goldman Sachs to sell shares of the firm’s common A stock valued at $0.01.</p> 
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 <p>“In accordance with the terms of the Distribution Agreement, we may, through our sales agents (Citigroup Global Markets, Barclays Inc., B Riley Securities, and Goldman Sachs), offer and sell from time to time up to 40,000,000 shares of our Class A common stock. The sales agents may act as agents on our behalf or purchase shares of our Class A common stock as principals.” </p> <cite>The prospectus later shared</cite>
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<p>Following AMC’s decision to sell shares to corporate retailers, the AMC stock price has plunged to new lows. AMC shares have been volatile over the past several months, with the firm trying its best to deliver stability to protect investors from encountering additional losses. The shares have recently been facing extreme volatility in terms of pricing, partially due to the firm’s decision to convert AMC and AMC preferred shares (APE) in August 2023.</p> 
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   <p lang="en" dir="ltr"><a href="https://twitter.com/search?q=%24AMC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">$AMC</a> keep getting punched in the face over and over — following the APE share conversion, the massive dilution begins with <a href="https://twitter.com/CEOAdam?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">@CEOAdam</a> selling 40 million shares to retail investors — share count going up 25% (158–&gt;198 mm shares). <a href="https://t.co/H14cVAKrLq" target="_blank" rel="nofollow">pic.twitter.com/H14cVAKrLq</a></p>— Rich Greenfield, LightShed 
   <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f526.png" alt="🔦" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@RichLightShed) <a href="https://twitter.com/RichLightShed/status/1699406624949940341?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">September 6, 2023</a>
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<p>The prospectus later highlights additional stability measures, including how the net proceeds acquired through the offerings will strengthen the company’s liquidity and refinance capabilities.</p> 
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<h3 id="ape-trading-halted-in-august">APE Trading Halted in August </h3> 
<p>Launched in 1920, AMC Entertainment Holdings is one of the oldest American theater chains, founded in Kansas, Missouri, United States. The company was listed on the New York Stock Exchange in 2013 as one of the largest US theater chains.</p> 
<p>In August 2022, the firm issued a new preferred share class, listed on the New York Stock Exchange under the “APE” ticker, which many saw as a nod to its meme stock status after a retail-driven rally in the previous year. However, last month, the firm announced it would <a href="https://tokenist.com/amcs-ape-to-cease-trading-from-25th-aug/" rel="dofollow" class="deco-link">halt the trading of APE shares</a> and proceed with raising more funds as it faced a potential bankruptcy. </p> 
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<p><strong><em>What do you think of AMC’s new move? Let us know in the comments below!</em></strong></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/amc-falls-19-as-firm-offers-to-sell-40m-shares/">AMC Falls 19% as Firm Offers to Sell 40M Shares</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

AMC Falls 19% as Firm Offers to Sell 40M Shares

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