(Reuters) – AMC Entertainment Holdings Inc. said on Wednesday it had raised $ 304.8 million by selling shares during an unprecedented social media-driven rally to its shares, though the US film firm could have increased about four times as much as waiting another day.
AMC was forced to raise capital to stay afloat after ticket sales plummeted 80% following the coronavirus outbreak. Last year it avoided bankruptcy thanks to a debt restructuring deal with its lenders and private equity firm Silver Lake.
Shares of AMC, based in Leawood, Kansas, rose 41% Monday and Tuesday as amateur investors, many of them organized online in forums such as Reddit’s WallStreetBest, decided to take funds from short-term coverage of the shares.
AMC revealed Wednesday that it had sold shares worth $ 304.8 million on Monday and Tuesday, at an average price of $ 4.81 per share.
However, the company’s shares jumped to 310% on Wednesday as the speculative frenzy intensified. They closed at $ 19.90 per share, up about 301% a day. If AMC had sold the same number of shares at that price, it would have raised $ 1.26 billion.
While AMC may decide to sell more shares in the coming days, the money it left on the table shows how the speculative concentration of the last few days on very short stocks, particularly those of video distributor GameStop Corp, presents both an opportunity and a challenge. for companies.
An AMC spokesman did not respond to any requests for comment.
AMC, which also operates British cinemas Odeon, said Monday it had already raised enough money to rule out a possible bankruptcy. Through a combination of debt and equity issues, it has raised $ 917 million since mid-December to help cushion the pandemic.
Reports of Greg Roumeliotis to New York; Edited by Paul Simao