Shares of AMC Entertainment Holdings Inc. plunged in active trading Wednesday toward a record low after the movie-theater operator disclosed an equity-distribution agreement in which the company could sell up to 40 million common shares.
The sales could represent up to 7.7% of the 519.2 million common shares outstanding as of Aug. 4.
AMC’s stock AMC, -36.80% sank 37.0% in afternoon trading, to put it on track to close below the current record-low close of $10.73 seen on Jan. 5, 2021. The stock was also headed for its third-biggest one-day decline, and the biggest since it lost 41.2% on Feb. 2, 2021.
Trading volume ballooned to 68.4 million shares, compared with the full-day average over the past 30 days of about 12.3 million shares.