AMC Explores Another Stock Sale Amid Reddit-Fueled Rally: Report

AMC Entertainment Holdings Inc. AMC is exploring options to raise fresh capital, including a stock sale, according to a Reuters report Thursday.

What Happened: Such a move would come amid the high interest the company is seeing with the Reddit group WallStreetBets that has seen its stock surge 432.5% year-to-date.

The movie theater chain was battered by the COVID-19 pandemic as movie theaters across the United States were forced shut to control the spread of the virus.

AMC said last week it had raised about $1 billion in fresh capital since December as it looked to ward off bankruptcy.

The Kansas-based company said Wednesday it had raised another $304.8 million in an equity sale.

Why It Matters: According to Reuters’ sources, AMC is looking to take advantage of the surge in stock this week to raise higher capital when it can, which will help it weather the pandemic.

Another option the company is reportedly considering is to negotiate more debt-to-equity swap with creditors, as per Reuters. Silver Lake on Thursday decided to convert its $600 million in AMC bonds to equity.

The movie theater chain’s isn’t the only stock to benefit from the WallStreetBets-fueled rally, with GameStop Corp. GME, Nokia Oyj NOK, and BlackBerry Ltd. BB seeing a similar surge.

Price Action: AMC shares traded 30.8% higher in the after-hours session at $11.29 after closing the regular session 56.57% lower.

Read Next: Exclusive: Webull Opens AMC, GameStop For Buying And Selling Amid Marketwide Trading Ban

Photo courtesy: Coolcaesar via Wikimedia