The S-3 filing with the Securities and Exchange Commission said AMC plans to sell up to 200 million shares at an estimated offering price of $4.22 per share, based on trading Nov. 30. Shares plunged 69 cents to $3.63 in trading on the New York Stock Exchange.
It’s the fourth time since September that AMC has announced a stock sale to raise cash. The beleaguered chain warned on Oct. 20 that it might have to file for Chapter 11 bankruptcy if it could not obtain additional sources of liquidity.
In the new filing, AMC warned, “Our ability to obtain additional liquidity, which if not realized or insufficient to generate the material amounts of additional liquidity that will be required until we are able to achieve more normalized levels of operating revenues, likely would result with us seeking an in-court or out-of-court restructuring of our liabilities, and in the event of such future liquidation or bankruptcy proceeding, holders of our common stock and other securities would likely suffer a total loss of their investment.”
The filing comes as the North American box office struggles to attract moviegoers amid a reluctance by major studios to release new titles. Universal’s animated family comedy “The Croods: A New Age” dominated business with $14.3 million during the slow Thanksgiving holiday weekend at 2,211 theaters with about half of domestic locations still closed. It was the lowest Thanksgiving haul in recent history.
AMC is the largest chain in the U.S. with 659 locations. It began reopening locations in August after shuttering them in March as the pandemic took hold.