According to a Securities and Exchange Commission (SEC) filing published Monday, AMC Entertainment Holdings (AMC) is issuing 20 million shares at a maximum offering price of $2.39 per share. Shares are currently trading at $2.21. AMC has repeatedly tapped the capital markets this year, raising millions in both debt and equity as it struggles to stay afloat.
AMC said that proceeds will be used for “general corporate purposes such as repaying, refinancing, redemption or repurchase of existing indebtedness or capital stock.” The company has a debt pile of $4.5 billion, posted only $119 million in revenue for the quarter ending in September, and it is urgently seeking additional liquidity.
Shares of AMC Entertainment Holdings (AMC) were down 6.16% on Monday and have plunged 77% in the last year. Last month it warned investors that it is at risk of filing Chapter 11 and going bankrupt. That is one of the reasons why it has been downgraded by S&P and is currently rated CCC- (Junk Bond).