(Bloomberg) — AMC Entertainment Holdings Inc. is climbing in premarket trading, extending Tuesday’s gains after raising $230.5 million in a stock sale to Mudrick Capital Management.
The movie-theater operator’s stock were up about 25% to $40.10 as of 6:49 a.m. in New York. AMC, a favorite among the retail crowd, also rose in extended trading Tuesday after closing 23% higher in the regular session.
The agreement with New York-based Mudrick is for 8.5 million shares of common stock at $27.12 apiece, 3.8% more than Friday’s closing price, AMC said in a statement. While Mudrick quickly turned around and dumped its entire stake, the shares continue to advance as retail investors rally to the meme stock. Chief Executive Officer Adam Aron also addressed the deal in a series of tweets on Tuesday.
“More than 500 million AMC shares change hands in a typical week. In our view, selling only 8.5 million shares is an example of our responsibly raising capital, and arming AMC with $230.5 million of additional cash by so doing,” he said in one of the tweets.
(Updates with premarket trading in second paragraph.)
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