Bad day yesterday on Wall Street for meme stocks: Bed Bath & Beyond fell by almost -28%, Koss lost 25%, AMC Entertainment fell by almost 18%; bad also GameStop -8.8%.
In particular, AMC Entertainment, fresh from the 100% rally yesterday, discounted the announcement of the company – the group that manages the number one cinema halls in the world -, concerning a second sale of shares within a few days: AMC said it had sold 11.5 million shares worth $ 587 million.
Already last week, the group announced that it had sold more than 8 million shares to hedge fund Mudrick Capital – which then immediately resold them -, raising $ 230.5 million.
And it doesn’t end there, as the company’s CEO and president Adam Aron appealed yesterday to shareholders to support a capital increase plan through the issuance of up to 25 million AMC shares: the resources could be used, he said. Aron, to repay debts, reduce interest costs, pay millions of unpaid rents, and also acquire new cinemas. In afterhours, AMC stock fell nearly 8%.