Founded in 1993 through brothers Tom and David Gardner, The Motley Fool is helping millions of people gain monetary freedom through our website, podcasts, books, newspaper columns, radio screens and high-level investment services.
The inventory of AMC Entertainment Holdings (NYSE: AMC) continued on Monday the crazy race that began with Reddit’s WallStreetBets investors last month. AMC inventories fell after a major shareholder changed inventory classes, allowing him to withdraw his money. % at 11:55 am EST.
AMC revealed in a presentation through the US Securities and Exchange Commission. The U. S. (SEC) that on February 1, Wanda America Entertainment, a unit of China’s Wanda organization, had traded its Class B shares in AMC for Class A shares “to allow the sale of its shares is not unusual. “
The February 5 presentation revealed the number of shares that were converted. Wanda Group is a parent company of AMC Theatres and shareholder of AMC Entertainment. Nor did he imply that the organization had sold shares.
Today’s investor reaction turns out to imply that if a major shareholder can invest, so do other investors. Even after a fall of more than 70% in recent highs related to Reddit’s frenzy, AMC shares continue to rise by more than 180%. from its starting point in 2021.
The company itself raised much-needed capital by rising percentage prices. AMC announced a new equity of $305 million to be offered on January 27. After a year of movie closures caused by a pandemic and delays in film release, AMC needed to strengthen its Cash Raised deserves to help the company avoid bankruptcy, its CEO said in a January 25 release, but dilution comes at a cost to existing percentage holders, and some continue to benefit from the recent increase in percentages.