Shares of AMC Entertainment surged again Tuesday after the theater chain sold more than 8 million shares to an investment firm, the latest in a series of capital raises for the struggling company turned meme stock.
AMC said in a securities filing that it raised $230.5 million through a stock sale to Mudrick Capital Management. The theater company said it would use the funds for potential acquisitions, upgrading its theaters and deleveraging its balance sheet.
Shares were up 17% in premarket trading.
AMC’s business was effectively halted during the pandemic, with movie theaters shut in most of the country for months and major studios delaying releases during the pandemic. However, the stock became a favorite of traders on Reddit and has seen wild swings in recent months.