AMC theaters promotes risky business venturePosted On: Jun. 4, 2021 1:45 PM CST
The extraordinary retail interest that has launched AMC Entertainment Holdings’ equity up 2,850% this year is spurring a new stock sale that could come with an interesting plot twist for daring investors, as indicated in a risk management warning on the sale: prepare to lose your investment.
The movie theater chain announced its stock sale Thursday complete with a risk factor included in the AMC prospectus, accessed by MarketWatch.com:
The market prices and trading volume of our shares of Class A common stock have recently experienced, and may continue to experience, extreme volatility, which could cause purchasers of our Class A common stock to incur substantial losses.
And perhaps preempting litigation with honesty, AMC says later in the prospectus:
Under the circumstances, we caution you against investing in our Class A common stock, unless you are prepared to incur the risk of losing all or a substantial portion of your investment.