By AMC Entertainment Holdings Inc. has experienced a five-day losing streak, with the stock closing the session down 2.5% at $5.15.
Continuation of a Losing Streak
AMC shares, with the ticker symbol AMC (-2.45%), are currently enduring their longest losing streak since a seven-day slide in August 2023. Having closed at a record-low of $5.30 in the previous session, this movie-theater chain, once a meme-stock darling, attracted a lot of attention on Stocktwits, a popular social platform for investors and traders.
Record-Breaking Lows
The recent stock price decline marks a significant departure from AMC’s meme-stock heyday when it achieved an all-time closing high of $339.05 on June 2, 2021. In the past, the record closing low for AMC had been $6.07 on December 21, 2023.
Adjustments to Debt
In an effort to address its substantial debt burden, which surpassed $5 billion in 2022, AMC recently executed a series of privately negotiated exchange agreements. These agreements allowed for the issuance of 3,258,657 shares of Class A common stock in exchange for $22.5 million of its notes due in 2026. The company reported that the implied value of each share issued was $6.94. It’s worth noting that AMC has no obligation to engage in similar transactions in the future, as stated in its regulatory filing.
Additionally, AMC implemented several measures in the past – such as the APE special dividend in 2022 and the conversion of APEs into AMC common stock as well as a reverse 1-for-10 split of common stock in 2023 – to tackle its debt burden.
Liquidity Challenges
AMC completed its latest at-the-market equity offering in December, successfully raising approximately $350 million. However, CEO Adam Aron has consistently warned about the company’s liquidity challenges.
Performance Comparison
Over the past twelve months, AMC shares have seen a decline of 84.8%, in stark contrast to the S&P 500 index’s gain of 20.6%.
Stay updated with the latest news on AMC Entertainment Holdings Inc. as it continues to navigate these challenging times.
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