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The Mudrick network gets a quick return on AMC shares when the meme stock frenzy returns

Mudrick Capital Management, a hedge fund run by Jason Mudrick, made a quick profit after returning to trading the meme stock market after buying and quickly selling its stake in AMC Entertainment.

The AMC announced Tuesday that it had raised $ 230.5 million by selling 8.5 million new shares of Mudricki for more than $ 27 per share, and said it intended to play a “crime” in buying smaller movie theaters that fought during the pandemic.

Before the day began, Mudrick sold the entire post, according to a person familiar with the fund’s trading.

The exact size of the gains could not be learned, but AMC shares responded enthusiastically to the fundraising news, and jumped $ 33.53 in trading on Tuesday morning, more than 28 percent from Friday’s close.

Mudrick Capital Management declined to comment on the trade. AMC Entertainment did not immediately respond to the request for comment.

AMC shares more than doubled Last week saw a resurgence of huge trades by retail investors in January, as the company was mostly among the “meme stocks” – especially GameStop – defended on social media such as the Reddit discussion forum. r / WallStreetBets.

Mudrick always had the intention to sell the shares quickly, after he noticed that the company was overvalued after returning to trading fed by Reddit, said a person who knew the trade.

By mid-afternoon in New York, AMC’s share price was down $ 31.40, about 20 percent a day.

Tuesday was not the first time Mudrick had won a bet on AMC shares. He gave the company $ 100 million last year when it threatened to bankrupt it by closing movie theaters, and took the shares as a loan fee. And earlier this year he exchanged existing AMC bonds for new shares and quickly sold them. The sale of the two shares together grossed a profit of $ 200 million.

Jason Mudrick, a serious specialist, founded the company in 2009 and currently manages about $ 3 billion in assets. Mudrick’s Impaired Opportunity Fund returned 11.3 percent to investors last year, with no fees, according to an HSBC report.

Private equity firm Silver Lake Partners has also taken advantage of increases in retail investors ’share price on AMC shares this year. In January, it exercised its right to exchange a $ 600 million bond in AMC shares for a profit of $ 113 million.

In May, Dalian Wanda, a longtime controlling shareholder in the AMC, sold a nearly 7 percent stake for about $ 14 a share.


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