AMC board members sold nearly $ 4 million worth of shares this week and cashed in the latest animal rally, which stemmed from the company’s “meme stock” status.
According to the Securities and Exchange Commission, three members of the AMC board of directors sold shares worth more than $ 800,000 each, while two other members sold shares worth more than $ 700,000 to each director. documents.
Three of the deals took place on Tuesday, when AMC shares were trading at $ 59 per share. Two more deals were made on Wednesday as AMC shares rose above $ 52 at the opening and fell below $ 49.50 at the close.
AMC shares were down about $ 42.80 on Friday morning – more than a quarter lower than Tuesday’s high, but 20 times higher than at the beginning of 2021.
Five directors – Philip Lader, Adam Jay Sussman, Howard Winchell Koch Jr., Kathleen M. Paul and Anthony J. Saich – currently own 17,722 shares of AMC stock.
Their current stake was about $ 750,000 each on Friday morning.
AMC, which destroyed its business during the coronavirus pandemic but destroyed it, has been targeted since January, along with other mem stocks such as GameStop and Blackberry.
When the cinema announced the release of 11.5 million new shares last week, the memes sought to fill the stock boom with money.
But AMC also warned investors that they could lose all their money.
“If you are not prepared to risk losing all or most of your investment, in such circumstances we warn you not to invest in our Class A common stock,” AMC wrote last Thursday. in their appeal to the regulators.
The company also acknowledged that the skyrocketing price “reflects market and trade dynamics that are not related to our core business or macro or industry fundamentals, and we don’t know how long these dynamics will last”.
In early June, AMC issued 8.5 shares of Mudrick Capital hedge fund, which sold for $ 230.5 million. Mudrik then immediately converted the shares to make a small profit.
In recent weeks, Reddit merchants from AMC and Gamestop have spread to another controversial “mem stock” called Clover Health. The founders of Clover are accused of demolishing hospitals in New Jersey.