AMC drops as movie-theater chain’s CEO again discusses potential issuance of 500 million shares

AMC Entertainment
  • AMC shares fell by more than 6% during Thursday’s session after the company reiterated plans to issue 500 million shares.
  • The movie-theater chain’s CEO sees an “opportunity” to bolster cash reserves and make other operational moves.
  • “We’ll be sensitive to dilution issues,” said AMC CEO Adam Aron on CNBC.
  • See more stories on Insider’s business page.

AMC shares fell Thursday after the movie-theater chain’s chief spoke about the company’s plan to issue 500 million shares.

AMC in a March regulatory filing said it wanted to increase the number of shares to total more than 1.02 billion and for shareholders to vote on the matter on May 4.

“We’ll be sensitive to dilution issues, but at the same time there’s an opportunity to bolster our cash reserves and there’s an opportunity to buy back debt at a discount or pay deferred theater rents,” AMC CEO Adam Aron said on CNBC’s “Squawk on the Street” program. “There are a lot of good reasons for shareholders to give us the authority.”

The company is already seeing benefits from the vaccination of millions of Americans from COVID-19 as well as from the release of new movies, Aron said.

Shares of AMC fell by as much as 6.3% to $9.56 before trimmed losses to 5%. The shares, which have grown in popularity among investors on Reddit’s Wall Street Bets forum, have leapt from around $2 each at the start of 2021.

Read the original article on Business Insider

A Cathie Wood ETF bought about 800,000 shares in a Serena Williams-backed SPAC that just entered a $1.6 billion deal

Cathie Wood
Cathie Wood.


Cathie Wood’s ARK Autonomous Technology & Robotics exchange-traded fund recently bought shares in a special-purpose acquisition company that counts tennis champion Serena Williams as a board member.

The ARKQ ETF snapped up 800,494 shares in Jaws Spitfire Acquisition Corp, according to data available on ARK Invest’s website. The fund counts Tesla, JD.com, Baidu, and Alphabet among its top ten holdings.

Miami-based Jaws is led by chairman Barry Sternlicht and CEO Matthew Walters. The SPAC recently entered a merger deal with digital manufacturing firm Velo3D to take it public, valuing the combined company at $1.6 billion.

Wood and the red-hot SPAC market have been caught up in a bit of a rough patch. Blank-check companies have already raised $96 billion across 296 IPOs so far in 2021, according to SPACInsider.com. Blank-check stocks tumbled on Thursday after Reuters reported the Securities and Exchange Commission has begun an inquiry into Wall Street’s SPAC frenzy and seeking voluntary information on dealings.

But 93% of SPACs that went public this week are trading below their $10 IPO price, Dealogic data compiled by Reuters showed. That is 14 out of 15 SPACs trading below par value.

Wood is known for her innovative investments in disruptive stocks. But her flagship $22.9 billion Innovation ETF is currently sitting on a 8% year-to-date loss after a broader pullback in high-growth stocks across multiple sectors. Meanwhile, the ARKQ ETF that bought into Jaws is up 4.6% year-to-date.

Read the original article on Business Insider