AMC Entertainment Holdings (AMC) - Get AMC Entertainment Holdings Inc. Class A Report was falling Wednesday after the movie theater chain operator said it hopes to sell up to 43 million shares, while scrubbing plans to sell 500 million more shares.
Shares of the Leawood, Kan., company were down 3.58% to $11.06 on Wednesday.
AMC said in a regulatory filing that it wants to sell up to 43 million shares in an at-the-market offering.
The company said it intends to use any proceeds for general corporate purposes, "which may include working capital, the repayment, refinancing, redemption or repurchase of existing indebtedness, capital expenditures and other investments."
In addition, AMC said its board will not ask shareholders for permission to sell up to 500 million additional shares at its upcoming annual shareholders meeting on May 4.
"We have previously pointed out that the sale of up to 43 million AMC shares, the currently available amount for possible issuance under a previous shareholder authorization, should more than satisfy AMC’s liquidity needs for 2021.," Adam Aron, CEO and president, said in statement. "This assumes an expected recovery in the patronage of movie theaters in the second half of this year."
Regarding a request for 500 million further shares to be authorized, Aron said, "many of our stockholders are telling us to wait."
"It is important to listen to these owners of our company, and that’s exactly what we are going to do," he said.
The company also disclosed preliminary results for the quarter ended March 31. AMC expects the net loss to range from $572.2 million to $567.2 million, compared with a $2.2 billion loss a year ago.
Revenue is expected to total $148.3 million, compared with $941.5 million a year ago.
Analysts surveyed by FactSet are calling for AMC to post a first-quarter loss $514.9 million on sales of $158.4 million.
As of March 31, AMC said it had resumed operations at 585 of its 590 U.S. theaters, with limited seating capacities of between 15% and 60%.
Last month, AMC posted a fiscal fourth-quarter loss narrower than estimates and said it was optimistic about getting to the "other side of this pandemic."
In January, AMC saw its stock price carried higher by wave of short-selling momentum led by retail investors acting on banter on the Reddit message board, WallStreetBets.
The movie-theater said early this year that bankruptcy is definitively "off the table."