AMC Will Bypass Shareholders To Issue New Stock

AMC Entertainment stock fell 3.85 percent Tuesday after the company said it would no longer seek shareholder approval to issue 25 million more shares. In a filing Tuesday, AMC said the proposal to increase its outstanding shares to about 549 million would no longer be up for a vote at its July 29 annual meeting. The company proposed the share increase in a separate filing June 3, seeking to capitalize on the Reddit-driven rally that had boosted the so-called meme stock by 2,300 percent this year to that point. The stock was up more than 2,350 percent for 2021 through July 2. AMC had previously sought to authorize 500 million new shares. That proposal was originally up for a vote in May, but the annual meeting was postponed and the request withdrawn after it became clear investors would shoot it down.