AMC Entertainment Holdings Inc. is selling another $110 million in stock, adding to a total that has already exceeded $2 billion since the theater chain got swept up into meme-stock madness and approaching the stock’s total market capitalization. Shares of AMC
fell as much as 22% on Thursday, hitting their lowest intraday prices since March 2021, after the company announced plans for its latest equity capital raise. Executives also said they hoped to hold a shareholder vote on a 1-for-10 reverse split on AMC’s common stock, as well as a proposal to boost the allowed number of AMC common shares to permit the conversion of AMC’s preferred equity units — or APEs
a reference to the nickname for the retail traders in the meme-stock universe — into common stock.
The price of AMC’s APE units jumped 75.2% to $1.20 on Thursday. AMC shares closed with a 7.4% decline at $4.91. Even before the $110 million equity raise announced Thursday, AMC had sold $2.04 billion in stock since the beginning of 2021 and the dawn of the meme-stocks era that that launched the movie-theater chain, GameStop Corp.
and others into the stratosphere. See also: What can we expect from meme stocks AMC, GameStop and Bed Bath & Beyond in 2023? That total does not include $159.1 million in stock sales that took place in the fourth quarter of 2020, before shares began to spike in January 2021. Including those sales with the others completed since the beginning of 2021 — $1.611 billion in common-stock offerings and $425 million in convertible shares — and adding the figure from Thursday’s announcement, would push the total even closer to AMC’s total market capitalization. The company’s market cap stood at $2.56 billion at Thursday’s close, according to Dow Jones Market Data. AMC is raising the $110 million via the sale of millions of APE units to Antara Capital, w …