Why AMC Entertainment Stock Dropped Today
AMC Entertainment (NYSE: AMC) is looking forward to people getting back into theaters, but pre-pandemic levels have not yet returned. The company still wants more flexibility to potentially issue shares to raise more capital, or to use to help the business, the CEO told CNBC in an interview. After hearing about the plans, investors fearing more potential dilution knocked the stock down Thursday. As of 12:45 p.m. EDT, shares in AMC had dropped 5.1%.
AMC CEO Adam Aron said today that the company has asked shareholders to approve the ability for AMC to issue 500 million new shares. Aron said he supported the plan because "there are a lot of benefits to our shareholders of having more authorized shares out on the market."
Source Fool.com
