AMC to Offer 50 Million Shares as Stock Declines Before Opening

Shares of AMC Entertainment Holdings Inc. fell 7.5% in pre-market trading on Friday after the company announced its intention to offer 50 million shares. The cinema chain revealed that it has entered into a deal with Goldman Sachs & Co. LLC, which will serve in two different capacities. Goldman Sachs will act as the sales agent and will also function as a forward seller in relation to hedging transactions.

The sales and registration agreement between AMC and Goldman Sachs & Co. LLC was established with Goldman Sachs International as the forward counterparty on December 6, 2024. The agreement pertains to Class A common stock with a nominal value of $0.01 per share, which may be issued and sold from time to time at the company's discretion.

The agreement enables AMC to utilize Goldman Sachs as the sales agent to issue and sell shares as outlined in the prospectus supplement that is part of the sales and registration agreement. Goldman Sachs may sell the shares on behalf of AMC or purchase them directly for its own account.