This new move signifies a "groundbreaking new approach" in terms of staying in touch with retail investors, according to AMC. Specifically, the company is going to find a new portal to connect with investors as well as offer free popcorn, exclusive screenings, and other free perks for those who invest in their stock. These perks will surely keep investors more interested and involved in the stock because it gives them motivation to do so.
The perks that AMC Entertainment will provide also include a new stock offering, which will raise $587.4 million in additional capital. AMC stated that they have sold 11.55 million shares at an average price of $50.85 per share. They ended up with lower stocks than anticipated, nevertheless.
When AMC made the announcement about the offering, they implied that they are selling an additional 11 million shares. Shares of the movie theater chain went much higher, with AMC racking in an additional $587.4 million in additional capital within a few hours following the announcement.
"Bringing in an additional $587.4 million of new equity on top of the $658.5 million already raised this quarter results in a total equity raise in the second quarter of $1.246 billion, substantially strengthening and improving AMC's balance sheet, providing valuable flexibility to respond to potential challenges and capitalize on attractive opportunities in the future," AMC President and CEO Adam Aron said in a statement.
AMC's shares have additionally skyrocketed more than 140% last week backed by Reddit's r/WallStreetBets forum while retail traders attempt to encourage one another regarding this sudden change in stock patterns.
AMC Entertainment, while offering perks to those who make investments in their stock, have capitalized on "attractive opportunities" to investors who know and are confident in their investments. The company will surely continue to come up with even more ways to attract investors, which will ultimately lead to the success of the stock of the company as a whole.