AMC Entertainment Holdings, Inc. said on Thursday the company plans on selling more than 11 million shares amid this week’s rally in its stock price. Earlier this week, the theater chain announced it had sold over 8 million shares to investment firm Mudrick Capital Management.
“In accordance with the terms of the Distribution Agreement, we may, through our sales agents, offer and sell from time to time up to an aggregate of 11,550,000 shares of our Class A common stock,” AMC said in a filing with the Securities and Exchange Commission. However, the company warned investors that the current rise in its stock price reflects “market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last.”
AMC was down 6.44% to $58.52 per share in premarket trading at 7:35 am ET after surging 95.22% to $62.55 at Wednesday’s close.