AMC Stock Is Tumbling Wednesday: What's Going On?
Portfolio Pulse from Adam Eckert
AMC Entertainment Holdings Inc (NYSE:AMC) shares are falling after the company entered into an equity distribution agreement to sell up to 40 million shares through an at-the-market offering. The company intends to use the net proceeds from the sale for various purposes including to bolster liquidity and repay existing debt. The news comes a week after AMC implemented a 10-to-1 reverse stock split.
September 06, 2023 | 1:23 pm
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AMC's stock price is falling after the announcement of an equity distribution agreement to sell up to 40 million shares. This could increase liquidity and help repay debt, but also dilutes existing shareholders.
The announcement of the equity distribution agreement has led to a fall in AMC's stock price. While the sale of shares could help the company increase its liquidity and repay its debt, it also dilutes the value of existing shares, which is likely causing the negative reaction in the market.
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