AMC Entertainment (AMC) said Friday in a regulatory filing it has entered a forward sales and registration agreement with Goldman Sachs to issue and sell up to 50 million shares of class A common stock 'from time-to-time' for hedging purposes.
The agreement provides floor and cap pricing to mitigate risks while capping upside potential, and settlement terms are expected about six months after the hedging period concludes in such a sale, according to the filing.
The company said it intends to use any net proceeds it receives from the sales agent to strengthen its balance sheet and reinvest in core business to improve and differentiate the movie-going experience under the AMC GO Plan.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.