AMC plunges 35% on fears the meme stock will be diluted by conversion of APE units
earlier this year. That's intended to help the firm raise cash to pay down debt, of which it paid off $200 million in the first quarter and just $42 million in the second quarter.
The company managed to raise $155 million by converting APE units in the first quarter, and $34 million in the second quarter. "There are real and potentially severe liquidity hurdles on the horizon that we will need to overcome. Even so, at this point, we are accustomed to and skilled in rising to meet any and all challenges and are very much committed to our relentless efforts to ensure that AMC is best positioned for sustained long-term success," AMC CEO Adam Aron said in a statement last week.
The stock has struggled since the heyday of the meme stock boom of 2021, with common shares down 94% from their all-time-high of $59.26. over the first and second quarter. The company's total revenue grew 21% over the first quarter to $954 million, and shot up another 16% in the second quarter to $1.34 billion. Common shares are up 34% from levels at the start of the year.
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