Meme stock AMC expands meeting, jumps by 20% as the theater series sells new stocks

Shares of AMC Entertainment resumed on Tuesday after a theater series sold more than eight million shares in an investment company, the latest in a series of rising company's cash-generating series turned into a meme stock.

AMC has securely secured $ 230.5 million in stock sales from Mudrick Capital Management. The theater company said it would use the funds to make possible purchases, upgrade theaters and remove its balance sheet.

Shares increased by 23% in afternoon trading.

On Tuesday afternoon, Bloomberg News reported that Mudrick had sold all of his new AMC shares. The stock has fallen from its high on the day following the report.

AMC's business was successfully shut down during the epidemic, when theaters were closed nationwide for months and large studios delayed evacuation during the epidemic. However, the stock became a seller's favorite on Reddit and has seen a change in sewage in recent months.

Shares doubled last week with surprisingly high volume as the speculative activity of brokers sold through message board conversations was revived.

The company has used those prices to sell additional shares to raise money. Stocks have risen more than 1,000% year-on-year.

Given that AMC raises hundreds of millions of dollars, this is a very positive outcome for our shareholders, said CEO and President Adam Aron in a file. It was obtained by issuing only 8.5 million shares, representing less than 1.7% of our shares issued and only a small fraction of our normal daily trading volume.

Price fluctuations can also be caused by the slightest pressure on stocks, caused by traders betting on stocks to limit their losses. About 20% of the company's shares are sold short, according to S3 Partners.

AMC has debts of around $ 5 billion and needs to defer $ 450 million in refunds as its money was severely burned during the epidemic. Theaters were closed for months to help prevent the spread of the virus, and when the company opened its doors, few customers felt free to go to the test, and movie studios held new releases.

Now, as vaccination rates increase and the number of cases of coronavirus decreases, consumer confidence in returning to movie theaters has increased. 

Over the weekend, John Krasinski’s A Quiet Place Part II, which followed his 2018 blockbuster, earned $ 48.4 million on Friday, Saturday and Sunday, the best of three days on any film release during the epidemic.

On the full weekend of the four-day Memorial Day, the North American box office received nearly $ 100 million in ticket sales.

However, while the initial box-office receipts are promising, the essentials of the theater business have changed over the past year, including the volume of theater, the release dates shared with streaming services and the number of days the movies played in theaters.

The protection embedded in the AMC, which closed on Friday with a market price of $ 11.8 billion, also provides a warning to investors: Our monetary policy, as stated at various trading prices, currently shows a very different rate than previously seen and is much higher than our currency of the market immediately before the COVID-19 epidemic, and to the extent that these measurements show trading potential unrelated to our financial performance or prospects, buyers of our Class A single stock may have significant losses if there is a market downturn driven by a return to previous measurements.