AMC Entertainment Holdings Inc. shares plummeted again on Tuesday, wiping out previous gains, after the movie theater operator said that it will no longer seek shareholder approval to sell additional shares. The stock AMC, -3.03 percent fell 4.0 percent in afternoon trade, wiping off an earlier intraday rise of up to 6.0 percent and putting it on track for its third straight loss.
After rocketing 390.6 percent during a four-week winning streak through the week of June 18, the meme stock had lost 12.3 percent over the past two weeks through Friday. AMC said it opted not to seek stockholder permission to expand the number of Class A shares outstanding, giving the company authority to sell 25 million shares, in a filing with the Securities and Exchange Commission. The company’s decision comes a month after it announced plans to ask shareholders for permission to issue 25 million more shares, bringing the total number of shares outstanding to 594.2 million. On the same day, AMC announced that it had sold 11.55 million shares to the public. The corporation said at the time that it had raised $1.25 billion in the second quarter through the sale of equity. The stock of AMC has up 389.3 percent in the last three months, and is up 2,254.2 percent year to date. In instance, shares of rival movie theater operator Cinemark Holdings Inc. CNK, -4.70 percent have increased 18.6 percent this year, while the S&P 500 index SPX, -0.37 percent has increased 15.4 percent./n
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