AMC Entertainment Is Selling $230 Million in Stock to Finance Acquisitions
AMC Entertainment Holdings (NYSE: AMC) is going on the offensive, selling over $230 million worth of stock to hedge fund operator Mudrick Capital Management at a premium so it can use the proceeds to make acquisitions.
The theater operator is selling 8.5 million shares to the private equity firm at a price of $27.12 per share, a nearly 4% premium to Friday's closing price of $26.12 per share. It says it intends to make "value creating acquisitions of additional theatre leases, as well as investments to enhance the consumer appeal of AMC's existing theatres." It may also reduce debt with the money.
The elevated price might not be the $500,000-per-share moonshot Reddit traders are hoping for, but it suggests AMC sees continued growth in its future.
Source Fool.com
