The so-called meme stock was the target of the Reddit investors, or "Apes" as many prefer to be called.
Retail investors have been buying the stock for months now, with AMC up over 2,500% year-to-date.
The SEC filing where AMC had agreed to sell more of its Class A common stock to distressed credit-focused investment firm Mudrick Capital for a total value of $230.5 million follows a pattern of AMC and its CEO Adam Aron taking advantage of extreme runups in the stock price. This comes thanks to massive waves of retail investors collectively encouraging one another to bid up the shares in an effort to unseat short-sellers, though in AMC’s case the stock has gotten a boost from a generally positive view that the movie-theater company’s worst days are over.
Note: At the time of publication, AMC stock was halted twice for volatility after rising more than 60%.
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