AMC (AMC) stock is in free fall so far this year.
The theater chain hit a new all-time low on Friday, down more than 2% to close the session at $5.17 per share. The stock is down more than 15% over the past four sessions.
The stock has been on a downward spiral as the company continues to issue shares, which dilutes investors’ holdings amid its looming debt.
Earlier this week AMC said it “entered into a series of privately negotiated exchange agreements, under which it has issued or will issue” more than 3.25 million Class A stock “in exchange for $22,500,000” to pay down notes due in 2026.
AMC added it “may engage in similar transactions in the future but is under no obligation to do so.”
Last November, AMC filed to offer up to $350 million in stock. Shares tanked as much as 20% on the news.
The offering followed an announced sale of 40 million shares in September “to bolster liquidity, to repay, refinance, redeem or repurchase its existing indebtedness,” and general corporate purposes.
The stock is down more than 80% since August 2023, when it traded just north of $40 per share.
A look at the stock’s meme-era bonanza days shows just how far shares have fallen from their all-time closing high of $339.05 in early June of 2021.
AMC is expected to announce fourth quarter earnings on Jan. 28. The company beat its third quarter revenue estimates last year following the movie hits “Barbie” and “Oppenheimer.”
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre.
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