AMC shares jump 15.39% during trading hours.
Meme stocks don't play by conventional rules. For evidence, just look at theater operator AMC Entertainment, whose shares are surging after the company announced it had sold stock.
Typically, shares are weak when a company sells more stock, as the market adjusts to new supply. Instead, AMC is up 14%.
And usually a company will sell large blocks of shares at a lower price than where they had been trading. Instead, AMC sold 8.5 million new shares to Mudrick Capital for $27.12 a share, a premium to Friday's close of $26.12.
The use of proceeds is one reason the market is excited. AMC needs more cash to evaluate acquisitions. The company is looking to grow coming out of the pandemic, possibly picking up other theater networks on the cheap.
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June 01, 2021 08:17 ET (12:17 GMT)
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