AMC Entertainment Holdings (NYSE:AMC) shares moved higher on Monday morning after the announcement on Wednesday last week that the cinema chain plans to sell up to 40 million shares spurred a three-day sell-off.
AMC shares closed on Friday at US$7.18, a record low.
The company said it plans to use the proceeds from the share sale to boost its liquidity, repay debts, and for general corporate purposes.
This comes less than a month after AMC carried out a 10-for-1 reverse stock split and gained court approval to convert its AMC Preferred Equity Units (APE) into common stock, which was effective on Friday, August 25.
But AMC shares had recovered slightly on Monday, adding 3% to $7.40 shortly after the opening bell in New York.
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