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AMC Entertainment Holdings (NYSE:AMC) fell more than 15% during premarket trading Thursday after entering an equity distribution agreement.
"In accordance with the terms of the Distribution Agreement, we may, through our sales agents, offer and sell from time to time our Class A common stock having an aggregate offering price of up to $250M," reads the prospectus supplement.
Citigroup, Barclays, B. Riley Securities and Goldman Sachs are the acting sales agents.
- "AMC has lost a staggering $7.23B over the last four years, and it is highly likely that they will report a large loss for 2024," said Seeking Alpha contributor and analyst WYCO Researcher. "With a very high debt load and a continued negative cash-flow because of the troubles facing the movie industry, a potential Ch.11 filing by AMC is not off the table."
- "While the market prices of our Class A common stock may respond to developments regarding our liquidity ... we believe that volatility and our current market prices also reflect market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last," reads the AMC prospectus supplement.
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