You may remember our friends at AMC, the theater network with pantsless CEOwho bent over till the end about stock memes. Perhaps crowds of enthusiastic retail investors saved AMC from crushing debt. Now AMC hopes to use them again to create more shares in the company.
This quarter, AMC declared dividend to shareholders: AMC Preferred Equity units traded as APE on the New York Stock Exchange. One of these babies will exist for each common share and can be converted into common shares if the company and investors vote to do so.
It’s kind of an “if” though. See, AMC wanted to sell more stock and got shot down by investors. Perhaps those investors didn’t want to be further undermined — AMC sold a lot of stock during the pandemic. Maybe someone else was playing. But APE, the solution, isn’t just a pretty marketing gimmick to keep retailers focused. This is the end for investors who voted against more shares. After giving investors about 500 million shares of APE, AMC can sell 4.5 billion units to the wider market, The Wall Street Journal. messages.
The news was announced after the market. Shares of AMC closed at $18.66 today, with shares down nearly 8 percent to $17.16 at 5:00 p.m. ET, suggesting investors aren’t entirely enamored with the plan. Or maybe they just didn’t like it company revenue figuresalso released today: AMC’s revenue hasn’t recovered since the pandemic.
Correction 6:44 p.m. ET: Adjusts the number of APE shares to be awarded to current AMC investors. We apologize for the error.