The share of the US cinema chain AMC Entertainment is once again at the center of investor interest, driven by a new wave of meme stock hype. On Wednesday, the AMC share recorded a significant decline of 20.00 percent to 5.48 US dollars in NYSE trading, after it had risen by almost 32 percent the day before. However, over the last five trading days, the share increased by a cumulative 71.79 percent.

The current surge in prices is closely linked to the return of Keith Gill, better known as Roaring Kitty, who played a significant role in the spectacular meme stock rally three years ago. His activities on Reddit at that time triggered a wave of coordinated purchases that particularly affected the stocks of AMC and GameStop, leading to a notable short squeeze.

Now, a strategic decision by AMC is causing additional stir: The company announced it will issue 23.3 million shares to buy back bonds worth $163.9 million, maturing in 2026. These bonds allow AMC to defer interest payments and pay higher interest later. The shares will be issued at an implied value of $7.33 per share, according to documents filed with the SEC.

This announcement follows a previous capital measure, in which AMC sold 72.5 million shares on Monday, raising approximately 250 million US dollars. According to Bloomberg, this capital is to be used to support a corporate turnaround.

The Cinema Operator Continues to Face Significant Challenges, Including a Debt Burden of Approximately $4.5 Billion. At the End of the First Quarter of 2024, AMC Had Liquid Assets Amounting to $624 Million. Despite an Improved Financial Situation, with a Quarterly Loss of $0.62 per Share Compared to $1.51 in the Previous Year, the Situation Remains Tense, Even Though Revenue at $951.4 Million Was Slightly Below the Previous Year's Level.

The stock of AMC briefly rallied in XETRA trading but then lost 0.36 percent to 16.74 Euros as the group continues to pursue its ambitions for financial stabilization.