AMC Entertainment was halted for volatility several times early Thursday after a newly announced capital raise. The stock fell 14% in morning trading while the preferred equity "APE" units surged nearly 90%. Shares were still down 13% in the afternoon. The movie-theater operator raised $110 million by selling APE units to hedge fund Antara Capital. The fund will also exchange $100 million of AMC debt for roughly 91 million APE units.

In addition, AMC is proposing a reverse stock split of AMC common shares at a 1-to-10 ratio. The capital raise and proposed reverse stock split come a day after AMC said it was no longer in talks to buy theaters from Regal parent company Cineworld, which filed for bankruptcy earlier this year. In a securities filing, AMC said discussions with Cineworld lenders regarding assets in the U.S. and Europe had ended.

AMC itself had been on the brink of bankruptcy in 2021, but was able to avert it after millions of retail investors turned its shares into a meme stock. The company has since devised several plans to raise more capital to reduce its debt and invest in acquisitions and its theaters.