AMC files to sell 11 million shares — stock immediately tanks

Posted by Maggie Fitzgerald

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  • AMC Entertainment on Thursday filed to sell 11.5 million shares of its stock.
  • Shares of AMC turned negative in premarket trading on the news, giving up a big gain.
  • AMC said it plans to use the money from the stock sale for “general corporate purposes,” which may include paying down existing debt and acquiring theater assets.
  • “We believe that the recent volatility and our current market prices reflect market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last,” AMC said in the SEC filing.

AMC Entertainment said Thursday it plans to sell more than 11 million shares amid the trading frenzy in its stock.

“In accordance with the terms of the Distribution Agreement, we may, through our sales agents, offer and sell from time to time up to an aggregate of 11,550,000 shares of our Class A common stock,” AMC said in an SEC filing.

Shares of AMC dropped 7% shortly after the open and then the NYSE halted the stock for volatility. AMC shares were up more than 20% in premarket trading before news of the stock sale.