Shares of AMC Entertainment Holdings Inc. tumbled by 19.6% on Thursday as the popular movie-theater chain and meme-stock favorite announced its plans to conduct an "at the market" sale of up to $350 million in common shares. The company, which has been grappling with a significant debt burden, filed this information with the Securities and Exchange Commission (SEC).

This move comes as AMC continues to struggle with its liquidity challenges, an issue that CEO Adam Aron has consistently highlighted in recent months. In an effort to address these concerns, the company had already completed an at-the-market equity offering in September, raising approximately $325.5 million.

Despite the significant hurdles it faces, AMC did manage to achieve a noteworthy milestone in its third-quarter results, which were released after the market closed on Wednesday. The company reported positive net income for the second consecutive quarter and recorded a profit. Additionally, AMC ended the quarter with a cash balance of $729.7 million, offering some respite amidst its ongoing financial struggles.

However, the market has not been kind to AMC, and its stock prices have suffered as a result. AMC's shares have fallen by a staggering 77.5% since the beginning of 2023, a sharp contrast to the performance of the broader market, as seen in the S&P 500.

With this recent announcement of a common share sale, AMC Entertainment is taking steps to address its mounting debt and enhance its liquidity position. The market will be closely watching the response from investors to this offering, as it could play a crucial role in determining the company's future financial stability.