AMC Entertainment Once Again on the Brink as It Sells Stock to Raise Cash
Just a day after its stock bounded over 20% higher on the reopening plans of its New York State theaters, AMC Entertainment (NYSE: AMC) is using the opportunity of the rising stock price to issue more shares.
The theater operator says it is facing a cash crunch that could force it to seek court-approved reorganization of its debts if it can't generate sufficient liquidity soon. AMC reiterated it is going to run out of money by the end of the year or early next year, so it announced today that it is launching a stock offering of up to 15 million shares, which amounts to approximately 14% of its shares outstanding.
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Source Fool.com