AMC Entertainment is looking to keep in closer contact with some of its newer investors, as the movie theater chain embraces its meme stock popularity.
AMC said Wednesday that it's launching AMC Investor Connect, an initiative that will put the company in direct communication with its individual shareholders to keep them up to date about important company information and provide them with special offers. AMC's retail shareholder base has grown to more than 3 million owners over the last several months.
AMC President and CEO Adam Aron said in a written statement that Leawood, Kansas-based company’s retail investor shareholder base owns more than 80% of AMC.
The announcement comes a day after AMC said that it is raising $230.5 million through an 8.5 million share sale, cashing in on the meme stock frenzy that has sent its stock price up more than 1,100% this year.
Shares continued their runup Wednesday, hitting an all-time high in intraday trading.
AMC is part of a Wall Street phenomenon that began this year pitting larger, institutional hedge funds against a cadre of online investors. Companies like GameStop and AMC have been shorted by hedge funds and other big investors, a bet that stock in the company will fall.
Smaller investors have instigated a “short squeeze” against those funds, pouring money into shares of those companies until larger funds are forced to sell off shares to cover money borrowed to buy them.
AMC said its Investor Connect initiative will launch in conjunction with the preliminary proxy statement for its July 29 annual shareholders meeting, which is expected to be filed publicly on Thursday.
To sign up for AMC Investor Connect, an investor must be or enroll as an AMC Stubs member, which includes AMC Stubs Insider, AMC Stubs Premiere and AMC Stubs A-List. AMC Stubs Insider is free to join and includes additional perks and rewards including invitations to special screenings.
Shares of AMC Entertainment Holdings Inc. jumped by nearly a third to $42.30 in morning trading.
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