AMC Raised $250 Million In ATM Offering As 'Meme' Stocks Rocket Higher

With AMC Entertainment and GameStop's short squeezes causing significant losses for short sellers on Monday, we noted the growing likelihood that "bankers are burning the phones at GME and AMC pitching ATM equity offerings for after the close." 

Fast forward to Tuesday morning.

And this. 

Bloomberg reports that AMC completed a previously disclosed ATM on March 28. The deal was completed through Citigroup Global Markets, Barclays Capital, B. Riley Securities, and Goldman Sachs & Co., raising about $250 million in new capital for the struggling company - at an average price of $3.45 per share - or about 72.5 million shares. 

Meanwhile, AMC is up 95% in premarket trading in New York, trading around the $10 handle. In the last two days, shares are up a whopping 232%. 

Before yesterday's ripper, AMC was a perfect candidate for a squeeze, with 55.4 million shares, or about 18.82% of the float short. 

The revival of the 'Meme day trading army' - occurred oddly with a post on X from Roaring Kitty, also known as Keith Gill, on Sunday night. 

GameStop is also higher in premarket, +124% to the $68 handle, on yet another massive short squeeze. In two days, shares have squeezed over 269% higher. 

Hedge funds were scorched in yesterday's Meme stock squeeze. 

GS' Most Shorted Stock Index had the largest single-day increase since mid-December. 

On Monday,  we cited a note from Goldman Sachs flow of funds guru, Scott Rubner, who told clients, "I am starting to see some real FOMO start to develop based on incomings last week. Roaring Kitty is back, the message boards are going crazy this am. It is time for a thread."

Being a squeeze, and just a squeeze, nothing is constant - and what goes up, at some point - after the hedge funds are roasted - must come down—yet another painful lesson.