What's Going On With AMC Entertainment Stock Wednesday?

Zinger Key Points
  • AMC says it entered into privately negotiated exchange agreements on Tuesday to issue 23,280,295 shares of its Class A common stock.
  • The company will exchange $163.85 million worth of its 10%/12% Cash/PIK Toggle Second Lien Subordinated Notes due 2026.
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AMC Entertainment Holdings Inc AMC shares are trading lower Wednesday after rallying to start the week. The company announced that it entered into agreements to issue stock in exchange for notes.

What Happened: In a new regulatory filing, AMC said it entered into privately negotiated exchange agreements on Tuesday to issue 23,280,295 shares of its Class A common stock in exchange for $163.85 million aggregate principal amount of its 10%/12% Cash/PIK Toggle Second Lien Subordinated Notes due 2026.

On Tuesday, AMC announced that it completed its previously disclosed at-the-market equity offering, which was launched on March 28. The company said it raised approximately $250 million of new equity capital through the sale of 72.5 million shares.

The moves from AMC come as the stock has soared this week alongside GameStop Corp GME and several other stocks with high short interest amid the return of Keith Gill, best known as “Roaring Kitty” on YouTube and X or “DeepF***ingValue” on Reddit, to social media.

Gill is often credited with sparking the meme stock movement of 2021 that saw traders across Reddit's r/WallStreetBets relentlessly buy shares of GameStop and AMC, which ultimately led to short squeezes in the stocks. 

Over the weekend, Gill posted a meme on X featuring a person sitting up and leaning forward in a chair, suggesting he was paying closer attention to GameStop, and markets in general. He has continued posting video clips on X throughout the week.

Check This Out: Roaring Kitty’s Timed Posts On X Ignite Fresh Rallies In GameStop, AMC, More Meme Stocks

AMC Price Action: AMC shares were down 9.71% at $6.19 at the time of publication. Despite Wednesday’s losses, AMC shares are still up approximately 114% for the week, according to Benzinga Pro.

Photo: Paul Sableman from Flickr.

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