Workhorse stock gets downgraded by Cowen, 'no catalyst going forward'

AMC to ask shareholders for right to issue 25 million more shares

AMC Entertainment Holdings Inc. undefined revealed Thursday afternoon that it will ask shareholders for the authority to issue up to 25 million shares, after selling stock into a dramatic upswell of its share price in recent days. "To successfully navigate the road ahead, we seek to assemble all of the financial tools that might help us," AMC Chief Executive Adam Aron said in a statement. "An important tool for any company is having shares available to issue if, and only if, the right value creation opportunity arises." AMC previously planned to ask shareholders for approval to issue up to 500 million fresh shares, roughly as many as are currently in circulation, but canceled those plans after an uproar from investors. Instead, the theater chain will seek approval for a smaller number, and would not be able to sell any shares included in the approval until 2022. While cancelling its earlier plans for a shareholder vote, AMC said it would sell more than 40 million shares it had already received investor approval for, and this week the company has sold 8.5 million shares to Mudrick Capital Management L.P. and 11.55 million shares in at-the-market offering announced Thursday morning and completed before the end of the day's trading session. The most recent stock issuance contributed to another roller-coaster trading day for the stock, which has been wrapped up in the "meme stock" phenomenon this year. AMC plans to hold its annual shareholders meeting on July 29, when the vote would be held. AMC shares fell 17.9% in Thursday's regular session, and were down roughly 5% in after-hours trading, when the latest update was announced.