AMC multiplex cinema.
Shares in AMC entertainment rose further on Wednesday, rising as much as 30% in pre-trading hours as investors shrugged off a report that a hedge fund had sold its stake in AMC.
At its current pre-IPO price of around $ 38 per share, AMC is about to open at an all-time high.
On Tuesday, AMC reported that it was sold 8.5 million newly issued shares to Mudrick Capital, the latest in a series of capital increases for Meme stock. The hedge fund later turned around and sold all of his AMC shares for a profit, according to a report from Bloomberg News.
AMC said in a security filing that it raised $ 230.5 million through a sale of shares to the investment firm. The cinema operator said it would use the funds for potential acquisitions, modernize its cinemas, and reduce its balance sheet.
AMC’s business was effectively shut down during the pandemic as cinemas were closed for months in most of the country. With no money coming in from ticket sales and concessions, AMC fell behind with its rent. On the verge of bankruptcy, short sellers raved about the stock.
Private investors have used their growing numbers to fight back. Last week, Investors shorting the stock have lost an estimated $ 1.23 billion according to data from S3 Partners, the shares rose more than 116%. The stock is up more than 1,400% since the start of the year.
The company has made special efforts to communicate with this new investor base. On Wednesday it was said to have launched a new portal on its website for retail investors. The website contains special offers including a can of free popcorn.