AMC Entertainment stock rose to as high as $30.41 in premarket trading, up 16.42%.AMC sells 8.5 million shares at near 4% premium to Mudrick Capital.
AMC Entertainment Holdings Inc. disclosed Tuesday that it sold 8.5 million shares of its common stock for $230.5 million to Mudrick Capital Management L.P. The share sale deal would represent a price of for AMC's stock of $27.12 a share, which is 3.8% above Friday's closing price of $26.12. The movie theater operator's stock jumped more than 16% in premarket trading, after rocketing 116.2% last week. AMC said it plans to use the proceeds for "the pursuit of value creating acquisitions of theatre assets and leases, as well as investments to enhance the consumer appeal of its theatres." AMC said it will also look for opportunities to reduce debt. The sale of shares represents 1.9% of the 450.3 million shares outstanding as of May 2. AMC's stock, which closed Thursday at a four-year high, has skyrocketed 1,132.1% year to date through Friday, while shares of fellow meme stock GameStop Corp. has soared 1,078.3% and the S&P 500 has climbed 11.9%.