On April 15, 2021 the CEO of AMC pledged:
" We are going to pledge right now today publicly and we will file this publicly so it will be binding on us, because you can’t announce intentions and then not carry through it, we hereby pledge at AMC that if the shareholders approve this authorization for 500 million new shares to be issued we will not use one of those 500 million shares in calendar year 2021. Not one. Not one. "
Today, only 45 days, (45 days later!):
" AMC Entertainment Holdings, Inc. (NYSE: AMC) (“AMC” or “the Company”), announced today that it has entered into an agreement to raise $230.5 million of cash from the sale of equity to Mudrick Capital Management, L.P. in exchange for 8.5 million shares of AMC’s Class A Common stock. "
Now, certainly, in a technical sense, AMC could argue that these new shares that were issued were actually authorized in 2013, but that is just in a way a bit of legal wrangling. The fact is that when the CEO was boasting about not selling new shares, they were likely at the exact same time in talks with Mudrick Capital to sell shares (230M deals don't just happen overnight).
Now, it may be good for AMC to get some cash, but we shouldn't overlook the duplicity here. Mudrick is a hedge fund, and if you think for a second they are going to have diamond hands, I would look yourself in a mirror. As soon as the squeeze is pushing shorts, Mudrick will be right there to help them close all their positions.
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