Tag: AMC Stocktwits (Page 1 of 21)

AMC Entertainment (NYSE:AMC) will now sell up to 40,000,000 shares to raise money according to the latest SEC filing.

The company announced that it has entered a new agreement with Citigroup, Barclays, B Riley Securities, and Goldman Sachs to periodically sell shares.

AMC stock fell more than -36% on Wednesday on the announcement marking more than -75% in losses this year-to-date.

On social media, shareholders allege crime and market manipulation to be taking place.

“On September 6, 2023, AMC Entertainment Holdings, Inc. entered into an equity distribution agreement with Citigroup Global Markets Inc., Barclays Capital Inc., B. Riley Securities, Inc., and Goldman Sachs & Co. LLC as sales agents (each, a “Sales Agent”, to sell up to 40,000,000 shares of Class A common stock, par value $0.01 per share, of the Company (the “Common Stock”), from time to time, through an “at-the-market” offering program.

Subject to the terms and conditions of the Equity Distribution Agreement, the Sales Agents will use reasonable efforts consistent with their normal trading and sales practices, applicable law and regulations, and the rules of the New York Stock Exchange to sell the Common Stock from time to time based upon the Company’s instructions for the sales, including any price, time or size limits specified by the Company.

Each Sales Agent will receive compensation of up to 2.5% of the gross sales price of the Common Stock sold through it as a Sales Agent under the Equity Distribution Agreement, and the Company has agreed to reimburse the Sales Agents for certain specified expenses.

The Company has also agreed to provide the Sales Agents with customary indemnification and contribution rights.

The Company is not obligated to sell any Common Stock under the Equity Distribution Agreement and may at any time suspend solicitation and offers under the Equity Distribution Agreement.

The Equity Distribution Agreement may be terminated by the Company at any time by giving written notice to the Sales Agents for any reason or by each Sales Agent at any time, with respect to such Sales Agent only, by giving written notice to the Company for any reason,” says the filing.

Also Read: Here Is The Latest AMC Stock Price Prediction From Analysts

AMC Will Now Raise Capital By Selling Stock

AMC Entertainment will now be able to raise cash by selling shares from time to time, as the company sees fit.

“The Company intends to use the net proceeds, if any, from the sale of the Common Stock pursuant to the Equity Distribution Agreement to bolster liquidity, to repay, refinance, redeem or repurchase its existing indebtedness (including expenses, accrued interest and premium, if any) and for general corporate purposes.”

The SEC filing comes after AMC announced the upcoming film centered around Taylor Swift’s concert tour, Taylor Swift | The Eras Tour, which earned $26 million dollars in advance ticket sales less than three hours after tickets first went on sale.

“AMC is still recovering from the Covid-19 pandemic which temporarily shuttered most theaters across the country and shifts in the industry with more films going directly to streaming.

However, the movie industry recently saw the fourth largest box office weekend in U.S. history with the blockbuster releases of Barbie and Oppenheimer“, says Forbes.

AMC has not announced a timeline for when this offering could begin.

However, the company said it plans to use the proceeds of the stock sale to pay down its debt.

In recent news, Wedbush upgraded AMC Entertainment from ‘underperform’ to ‘neutral’ with analysts currently looking at a 17.98% upside, Nasdaq reports.

Investor sentiment at the moment is quite strong — what are your thoughts? Leave a comment down below.

Also Read: AMC Stock: The SEC Has Now Violated Threshold Rule

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The SEC has now violated the 13-day Threshold Securities List rule for AMC Entertainment (NYSE:AMC) which states that a broker-dealer must immediately close out all fail-to-deliver positions by purchasing shares in the open market.

As of Friday, September 1st, AMC has now been on the threshold list for 50 consecutive days and pricing has not reflected indication of strong purchasing in the past weeks.

“Sometimes there are fails to deliver, and a fail to deliver is when you don’t have the ability to prove that you borrowed the stock legally before you actually shorted it”, said Yahoo’s Senior Markets and Data Reporter Jared Blikre.

He says a company joining the NYSE Threshold Securities List is a clear indication of manipulation in the market, primarily through ‘naked short selling’, which Wes Christian says is a worldwide problem.

AMC Entertainment FTDs surged big in the end of June according to the latest report by Stocksera.

By June 30th, the number of fails-to-deliver that day surpassed more than 12.9 million, equivalent to more than $57 million.

In April, AMC hit all-time highs when FTDs soared between 17 million and 18 million, equaling $85.4 million (non-cumulative).

And in July, FTDs saw as much as $60 million, or 14.1 million FTDs in one single day.

FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.

These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.

In the case of sellers, it means not having the goods to meet that transaction.

Failure-to-delivers can occur in options trading or when selling short naked, per Investopedia.

Related: Will APE Now Trigger an AMC Short Squeeze Soon?

Is Anything Being Done About AMC’s High FTD Rate?

In April, AMC CEO Adam Aron announced that the company had contacted both FINRA and the NYSE to look closely at the trading of their stock primarily due to the high number of FTDs.

“Many of you, and we, are aware that AMC Entertainment has been on ‘The Threshold List‘ for 3+ weeks, indicating a number of FTDs.

Some of you may be pleased to learn that we have contacted both FINRA and the NYSE asking that they both look closely at the trading of our stock.”

In August, the CEO released the following update:

“Many of you are incensed by the high number of “Fail to Deliver” AMC shares, and that AMC again has been on the Threshold List for multiple weeks. We repeatedly have gone to the NYSE and FINRA, and did so again in July, to put and keep this entire situation on their radar,” said the CEO on FTDs this month.

The high reportings of FTDs in AMC Entertainment stock suggest an unnatural occurrence of events that all point towards some sort of discrepancy, manipulation or not.

The CEO has said in the past that he has not seen any signs of synthetic shares, with reason too since AMC’s lenders, who are also short on the stock, have complicated binding agreements with the CEO.

In the meantime, we’re seeing companies such as Hycroft Mining, Mullen Automotive, Genius Group, and Meta Materials investigating what they believe to be an attack on their company stock via naked short selling.

Some investors wonder if AMC Entertainment is already investigating these possibilities behind-the-scenes.

But I’m curious to know what you think. Leave your thoughts in the comment section of the blog down below. Share this article to raise awareness.

Also Read: Wedbush Now Upgrades AMC From Underperform to Neutral

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