An AMC in West Hollywood. (Dania Maxwell / Los Angeles Times)
According to Bloomberg news Thursday. AMC Entertainment (AMC) CEO, Adam Aron said that their shares are once again “under attack” from short sellers after skirting bankruptcy during the Covid-19 pandemic. Aron said the volume of short sales rose about 50% in March to 73.8 million shares, and praised the meme investors who bid the stock up to more than $20 a share in January.
Aron also mentioned on a proposal to raise new shares. He said the company won’t seek to sell the 500 million new shares in 2021 which the company is asking shareholders to authorize, but rather in the coming years. He is seeking to carry out a long-term growth plan that to silence AMC’s doubters.
Indeed, the pandemic forced theaters to close, which made the company encountered many difficulties over the past year, but the thousands of retail investors helped them. In fact, the company and its investors have been fighting against short sellers, but Aron has also brought some confidence to its investors in the interview. He said if investors at the May 4 annual meeting approve the plan for additional stock, he will gain flexibility to buy back debt at a discount or acquire another chain at an attractive price, which would counteract any dilution.
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