AMC Entertainment’s announcement Thursday that it could sell up to 11. 6 million shares comes with an unprecedented warning to potential investors: be prepared to lose most, if all, of your investment in our company.
The movie chain has noticed a dizzying uptick in recent weeks, soon making more than $70 and generating a cumulative pullback of 3. 325%, with retail investors piling up on the name. On Wednesday, valued at $30 billion, AMC worth more than Best Buy.
Chief Executive Adam Aron is benefiting from the meteoric rise, as he has raised billions of dollars this week. The company on Tuesday sold a value of $230 million in percentages to hedge fund Mudrick Capital, and many millions more may appear on the company’s balance sheet. sheet on the value of your most recent percentage offer.
“We believe that recent volatility and our existing market place costs reflect market place and business dynamics unrelated to our underlying business, or macroeconomic or sector fundamentals, and we do not know how long this momentum will last,” AMC said at a Securities and Exchange Commission. presentation on Thursday.
AMC also warned that it opposes making an investment in the company unless investors are willing to lose all their money.
“In those circumstances, we suggest that you invest in our Class A shares, which are not unusual, unless you are willing to run the threat of wasting all or a very significant portion of your investment,” the record states.
That threat is obvious in Thursday morning trading, as inventory fell 34%, to $41. 25.
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