It's been a wild day for AMC Theatres on Wall Street.
Shares of AMC, the world's largest movie theater chain, soared more than 120 percent on Wednesday, at one point hitting a new all-time high of over $70, CNN reports. This trading "frenzy" triggered "several trading halts," according to CNBC. The company's previous intraday high, CNBC notes, was $36.72.
AMC is one of a number of heavily-shorted stocks that have been backed by traders on the WallStreetBets subreddit. Its shares also surged on Tuesday in the wake of a big opening weekend for A Quiet Place Part II at the box office over Memorial Day weekend, as well as after the theater chain announced it had raised $230.5 million by selling shares to Mudrick Capital Management, per CNN. Mudrick, Bloomberg reported, subsequently "sold all its stock" in AMC.
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All of this comes after AMC was facing potential bankruptcy in 2020 as theaters closed during the COVID-19 pandemic, with the company warning in October it could be out of cash by the end of the year. It later said in January it had raised enough money to "make it through this dark coronavirus-impacted winter."
AMC CEO Adam Aron said Tuesday the newly-raised $230.5 million in funds "will allow us to be aggressive in going after the most valuable theatre assets," as the company is "being presented with highly attractive theatre acquisition opportunities." Aron also said that AMC will treat its investors to a number of "special benefits" including a "free large popcorn on us."
