Adam Aron responds to investors who disapproved of its latest stock sale after raising a whopping $184 million, equivalent to 50 million shares.
Despite raising capital, AMC Entertainment stock (NYSE:AMC) is down nearly 14% this year-to-date already.
On December 6, 2024, AMC Entertainment made headlines by entering into a Sales and Registration Agreement with Goldman Sachs, allowing the company to sell up to 50 million shares of its Class A common stock through at-the-market offerings.
By January 15, 2025, AMC successfully sold all of these shares, generating gross proceeds of approximately $183.8 million.
While this move provides AMC with much-needed capital, it also raised concerns about the long-term implications for existing investors.
However, AMC CEO Adam Aron says the decision to sell stock was absolutely necessary for the well-being of the movie theater chain.
“As detailed in an AMC SEC filing, our 50 million share At The Market equity offering has been completed.
We have raised at least $184 million of additional cash, prior to commissions/fees
We realize from the vitriolic messages on X/Twitter that some of you don’t approve, but I cannot emphasize enough that it is so absolutely vital and crucial for AMC to have robust cash reserves,” Aron posted on X, formerly Twitter.
Earlier this month, Adam Aron stated that he understands retail investors’ pain in regard to the stock’s diluted share price.
“I believe I remain AMC’s largest retail investor.
I own 722,820 AMC shares and will vest in 1.2 million more AMC shares within 26 months (many by March ‘25).
So, I certainly feel and share in your pain as AMC’s share price has fallen in 2023 and 2024.
I understand that it hurts,” the CEO stated.
Many have shared their rancor after failing to pull their money out despite all the warning signs*.
AMC Theatres’ decision to raise $183.8 million through stock sales presents a mixed bag of opportunities and challenges.
While the additional capital can strengthen the company’s financial position and facilitate strategic investments, it’s a double-edged sword.
Existing investors must navigate this complex landscape as they hold out hope for another significant rally.
As AMC continues to adapt to the evolving entertainment industry, the balance between raising funds and protecting shareholder value will be crucial in determining its future success.
Also Read: Robinhood To Pay SEC $45 Million In Charges Over Short Sale Violations
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About The Author
Adam Aron has been playing amc shareholders all along. Pretending to be on our side yet screwing us when he consolidated our shares. He said that he feels retail investor’s pain. No the hell he doesn’t, he’s a rich, millionaire, prick who has plenty of money to carry his lineage for years to come. The average retail investor doesn’t have that. We’re just trying to make a lil extra to better our lives.
If you’re an AMC shareholder, leave your thoughts below.
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