AMC Extends Gains As Retail Traders Applaud Announcement To Take $ 35 Million Off Its Most Expensive Debt

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  • AMC shares climbed Friday for the second day after the company announced it had discharged its debt.
  • The movie theater chain bought back $ 41.3 million in debt to reduce its interest expense.
  • Stocks are worth 16 times what they were at the start of the year amid the very stock craze.
  • See more stories on the Insider business page.

AMC shares extended their two-day gain to 11% on Friday after the favorite of retail traders announced it had paid off some of its most expensive debt.

The stock rose 4% in pre-market trading before narrowing the gain to around 3% after the opening bell. The move follows a 7% gain in Thursday’s session. AMC shares were trading at $ 38.89 at 10:16 a.m. ET on Friday.

AMC’s $ 41.3 million debt repurchase reduced its overall interest expense, the company said in the statement.

“Buying back some of our costliest debts is one of the many steps we are taking to optimally position AMC for the future,” AMC CEO Adam Aron said in the statement. Thursday statement.

AMC was all the rage on Twitter with the hashtag #AMCtothemoon. On Reddit’s Wall Street Bets, the company was the most mentioned stock in the past 24 hours with almost 300 mentions, TopStonks the data showed.

Aron starred in his company’s status as a meme stock this year, by reaching out to retail investors through tweets, YouTube videos, and even by providing regular investors with AMC theater benefits. The company also plans to accept cryptocurrencies such as Bitcoin and Ethereum, the statement said.

Although the theater chain has flirted with bankruptcy in the past, it has raised funds through several stock offerings this year, capitalizing on the stock’s popularity with retail investors. In July, however, the company put aside plans for a further sale of shares after investors berated the idea, and Aron pledged on Twitter to present any discussion of further sales until the end. from 2021.

Analysts previously said the firm’s true value is far detached of its stock market price and probably much lower, thanks to its debt, low profits and the dilution of its stock.

The company’s shares are trading at around 16 times their value at the start of the year.


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