AMC has announced that it raised $ 230 million after selling more than 8 million shares to investment firm Mudrick Capital Management. The cinema company said it would use these new funds for possible acquisitions, to modernize its theaters and to clean up its accounts.

The news has caused its stock to soar 20%, although a rise of this caliber is something its price is used to.

AMC’s business came to a halt during the pandemic, with cinemas closed in most parts of the country for months and major studios delaying premieres. However, the stock became a favorite of traders on Reddit and has undergone big changes in recent months. So far this year their titles have risen by 1.500%.

Its listing soared 90% last week with incredibly high volume as speculative activity from retail traders fueled by forum chats accelerated once again.

The company has taken advantage of those price increases by selling additional shares to raise cash. “Given that AMC is raising hundreds of millions of dollars, this is an extremely positive outcome for our shareholders,” said CEO and President Adam Aron.

The businessman assures that the new round of collection and sale of AMC securities “was achieved through the issuance of only 8.5 million shares, which represent less than 1,7% of our issued share capital and only a small portion of our typical daily trading volume. “

However, Aron also warned investors “our market capitalization, as implied by various trading prices, currently reflects valuations that differ significantly from those seen before the recent volatility and that are significantly higher than our market capitalization before. To the extent that these valuations reflect business dynamics unrelated to our financial performance or prospects, buyers of our shares could incur in losses substantial if there are declines in market prices driven by a return to previous valuations. “

The actions “meme” return to the load: AMC gains more than 1,400% in the year

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