AMC: AMC Shares Drop 14% to Hover Near Record Lows After Filing to Sell $250M of Stock

Pure meme stock play has been unable to reel out of a huge mess with its stock cratering 90% over the past 12 months.

Key Points:

• AMC stock wiped out 14% of its value.
• Company plans to raise $250 million.
• Shares are down 99% from record.
• AMC stock AMC is under pressure after a recent securities filing said the company is raising $250 million through a share sale at market prices. The pure meme stock play dropped 14% to close Thursday’s session at $3.72 a share, or 12 cents from its all-time low of $3.60 hit on February 6. The offering will help AMC boost its liquidity reserves and repay some of its crushing debt.
• But all that comes with a toll on share price, plunging the company’s dwindling valuation into a downward spiral. Back in its meme-fueled glorious days of 2021, AMC was sitting on a valuation of about $30 billion when, in the span of a few weeks, it whipped up a 36-fold increase. Bad times followed and AMC lost its luster when it went through a contentious share dilution.
• This year alone, the struggling movie-theater chain has lost about 40% of its market cap. Zoom out, and you see that 90% of its value has been washed out in the past 12 months. Zoom out again, and 99% disappear from AMC’s record high market valuation three years ago. These are tough to digest figures even by the most loyal diamond hands in the deepest corners of Reddit’s stock-focused chat rooms.