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In New York, pedestrians pass in front of an AMC theater. AMC Entertainment said Tuesday that it had tabled a proposal asking its shareholders to allow the movie theater chain to issue up to 25 million more shares. Scott Mlyn | CNBCAMC Entertainment said Tuesday that it had tabled a proposal asking its shareholders to allow the movie theater chain to issue up to 25 million more shares. The proposal has been removed from the agenda for the company’s upcoming annual meeting of stockholders, according to a filing with the Securities and Exchange Commission. On the news, AMC stock rose roughly 4% in premarket trade. On Twitter, Chief Executive Officer Adam Aron also revealed the move, writing: “It’s no secret that I believe shareholders should authorize the purchase of an additional 25 million AMC shares. What matters to us, though, is what YOU think. There are a lot of yeses and a lot of noes. AMC does not want to go through with a split like this.” The company has been engulfed in a trading frenzy among retail investors who utilize platforms like Reddit to enhance their stock picks in recent weeks. AMC stock has risen more than 2,350 percent year to date as a result of this. The company’s market capitalization has risen to almost $26 billion. Previously, AMC had planned to make more stock offerings to obtain money for future acquisitions, such as purchasing ArcLight and Pacific theater locations that had been shuttered due to the pandemic. The proceeds might potentially be used to pay down debt, cut interest payments, or pay off millions in delinquent rent, according to the report. AMC has been raising cash through stock sales in recent months. Aron claims that the company would have gone bankrupt if not for the additional shares. The coronavirus epidemic has been navigated by AMC through fundraising initiatives that have allowed it to continue operating, albeit at a reduced capacity. Relaxed vaccination efforts Customers are returning as a result of Covid limits and new movie releases. — Sarah Whitten of CNBC contributed to this article./nRead More

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