AMC Entertainment (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report shares dropped on Thursday after the country's largest movie theater chain offered as many as 200 million Class A shares.
Shares of the Leawood, Kan., company at last check fell 3.4% to $4.17. The stock is trading at a bit more than twice its 52-week low of $1.95, set in mid-April, and about half its 52-week high of $8.78, set in mid-December 2019.
Based on Wednesday's closing price of $4.32, the offering could be worth as much as $864 million, Dow Jones reported.
The company, in an S-3 Securities and Exchange Commission filing, said it would use the proceeds for general purposes. That might mean repaying, refinancing, redeeming or repurchasing debt or capital stock, working capital purposes, capital spending, and other investments, AMC said.
AMC said it may sell the shares from time to time, in one or more series or issuances, and on terms that will be determined at the time of the offering.
As of Oct. 30 the company had 85.6 million Class A and 51.8 million Class B shares outstanding.
In October, AMC had warned that it could run out of cash by year's end or early next year as it struggled through the coronavirus pandemic.
AMC had said in a regulatory filing that if attendance levels at its theaters did not significantly improve, or if it did not gain access to additional sources of liquidity, "at the existing cash burn rate, the company anticipates that existing cash resources would be largely depleted by the end of 2020 or early 2021."
Last month, AMC announced its facilities would be available for private rentals for as low as $99.