AMC, meme stock surge is ‘simply just not healthy,’ strategist says

Pedestrians pass in front of an AMC theater in New York.

Scott Mlyn | CNBC

AMC Entertainment said Tuesday that it has tabled a proposal that would have asked its shareholders to allow the movie theater chain to issue up to 25 million more shares.

In a filing with the Securities and Exchange Commission, the company said the proposal has been withdrawn from an agenda for its upcoming annual meeting of stockholders.

AMC shares jumped nearly 4% in premarket trading on the news.

Chief Executive Officer Adam Aron also announced the news on Twitter, saying: “It’s no secret I think shareholders should authorize 25 million more AMC shares. But what YOU think is important to us. Many yes, many no. AMC does not want to proceed with such a split.”

In recent weeks, the company has been caught up in a trading frenzy among retail investors that use platforms like Reddit to boost their stock picks.

AMC shares are up more than 2,350% year to date.

This story is breaking news. Please check back for updates.

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