What's Going On With AMC Entertainment Stock?

AMC Entertainment Holdings Inc AMC shares are trading off session highs, flat at $7.17 Monday afternoon. The stock is trading lower by 45% over the trailing week on continued weakness after the company last week entered into an equity distribution agreement for up to 40 million shares at an at-the-market program.

What To Know

AMC last week revealed an equity distribution agreement that enables the company to periodically sell up to 40 million shares of common stock through an offering program.

The purpose behind this move, according to AMC, is to utilize the potential proceeds from these share sales for multiple objectives. These include strengthening the company's financial stability by increasing its available funds, repaying, refinancing, redeeming or repurchasing its existing debts and supporting its general corporate operations.

What Else Is Going On With AMC?

AMC Theatres recently announced the company is set to showcase the TAYLOR SWIFT | THE ERAS TOUR concert film starting October 13. Each U.S. AMC Theatre will offer a minimum of four daily showtimes on Thursdays through Sundays.

In a bid to make the event accessible to Taylor Swift's extensive fan base, adult tickets for the concert film will be priced at $19.89 plus tax, while children's and senior tickets will be $13.13 plus tax.

The company says the film will be available in IMAX at AMC, Dolby Cinema at AMC and other branded premium large format screens with their respective standard upcharges.

Anticipating high ticket demand, AMC says the company has expanded its ticket server capacity to accommodate over five times the current record for tickets sold in an hour.

See Also: Taylor Swift's 'Eras Tour' Sets New Records, Expands With 15 Additional U.S. Dates

AMC shares are otherwise lower by 90% over the trailing year. Notably, the stock commenced trading under a 10-to-1 reverse split arrangement in August. The company's AMC Preferred Equity Units, formerly traded as APE, underwent conversion into common stock on Friday.

For the unitiated, although AMC stock wasn't in immediate danger of delisting, companies often opt for a reverse stock split when their stock price has fallen significantly and they want to avoid delisting from stock exchanges that have minimum price requirements.

Following the conversion, the total AMC share count rose from roughly 542.2 million to 550 million shares. AMC stock has also fallen roughly 90% over the past year, despite several records at the box office.

According to data from Benzinga Pro, AMC has a 52-week high of $107.50 and a 52-week low of $7.05.