Cinema chain AMC Entertainment announced Thursday that it plans to sell 11.5 million new shares amid a roller-coaster rally that’s sent its stock soaring — but the company also warned investors that they could lose all their money.
“Under the circumstances, we caution you against investing in our Class A common stock, unless you are prepared to incur the risk of losing all or a substantial portion of your investment,” the movie theater company said Thursday in a filing with securities regulators.
AMC’s stock, initially up more than 14 percent in premarket trading, reversed course on the news of the stock sale. Shares of the company were last seen trading down over 4 percent.
The company has caught the attention of so-called Reddit traders in recent weeks — which pushed shares up nearly 140 percent this week to an all-time high closing price of $62.55 on Wednesday.
AMC’s stock is up more than 2,800 percent this year thanks to the rally, pushing its valuation to above $31 billion — up from $400 million last year.
Other so-called meme stocks, including Express, BlackBerry and others, also saw their prices pushed upward, similar to what was seen earlier this