AMC: AMC Stock Tanks 37% to Record Low After Company Agrees to Dump 40M Shares

Technically, the sale hasn’t happened yet. And that’s why Reddit is still not giving up hope. In fact, it’s betting on a sharp reversal.

• AMC stock AMC is deep underwater on Thursday, following a 36.8% drop on Wednesday to a record low of $8.62 a share. The cinema chain released an 8-K filing with the SEC where it says it has agreed to proceed with an “at-the-market” sale of up to 40 million shares of class A common stock. The news comes shortly after a brutal 65% drop in a week in late August.
• Among the sales agents listed for the deal are Citigroup, Barclays, and Goldman Sachs. AMC said it will use the fresh capital to bolster its liquidity reserves and clear some of its debts. Presently, AMC has roughly $9.5bn of debt and lease obligations, while its market cap lingers around the $1.4bn mark.
• Reddit bros will tell you it’s a scare tactic, manufactured by the likes of “Kenny G’s” Citadel. And why shouldn’t they? AMC has been a mainstay in the Reddit-favored stocks, alongside GameStop GME. It’s the company that ushered the retail traders’ army on Wall Street. And seeing it getting beat up like that, it does raise questions.