Mar 28, 2024 - $AMC Entertainment (AMC.US)$ shares fell %13.57 to $3.751 intraday on Thursday.
Today, AMC announced an "at-the-market offering program". According to this filing, AMC entered into an equity distribution agreement to sell up to $250 million of its common stock from time to time in an at-the-market offering. AMC intends to use the net proceeds to bolster liquidity, to repay, refinance, redeem or repurchase its existing indebtedness and for general corporate purposes.
The company said: "the offering is being conducted to enhance the Company’s liquidity in light of the low first quarter box office, resulting in part as previously disclosed from the Writers Guild of America strike and the Screen Actors Guild-American Federation of Television and Radio Artists strike that occurred during 2023, increased seasonal working capital requirements, and the resulting cash burn that the company has experienced."
Source: FORM 8-K