The share worth of film theatre chain AMC Leisure (AMC) collapsed after the corporate introduced plans to hold out a share sale and a 10-for-1 reverse inventory break up.
AMC’s inventory fell as a lot as 22% to a low of $4.11 U.S. on December 22, earlier than paring these declines considerably.
In premarket buying and selling right now (December 23), the inventory is down an additional 9%. 12 months-to-date, AMC’s inventory is down greater than 80%.
The newest decline got here after AMC stated it plans to lift $110 million U.S. via the sale of most well-liked inventory. The corporate additionally introduced a 10-for-1 reverse inventory break up that can artificially elevate its share worth.
AMC, which has struggled for the reason that COVID-19 pandemic led to the closure of its film theatres all over the world, has stated it wants to lift money, cut back debt, and discover doable acquisitions.
The corporate has additionally been handled as a meme inventory at a number of occasions since early 2021, with retail merchants pumping after which dumping AMC shares.
AMC’s inventory continues to be among the many most-discussed matters on the Reddit web page WallStreetBets.