The share price of movie theatre chain AMC Entertainment (AMC) collapsed after the company announced plans to carry out a share sale and a 10-for-1 reverse stock split.
AMC’s stock fell as much as 22% to a low of $4.11 U.S. on December 22, before paring those declines somewhat.
In premarket trading today (December 23), the stock is down a further 9%. Year-to-date, AMC’s stock is down more than 80%.
The latest decline came after AMC said it plans to raise $110 million U.S. through the sale of preferred stock. The company also announced a 10-for-1 reverse stock split that will artificially raise its share price.
AMC, which has struggled since the COVID-19 pandemic led to the closure of its movie theatres around the world, has said it needs to raise cash, reduce debt, and explore possible acquisitions.
The company has also been treated as a meme stock at several times since early 2021, with retail traders pumping and then dumping AMC shares.
AMC’s stock continues to be among the most-discussed topics on the Reddit page WallStreetBets.
