finally gives “monkeys” what do they want. The movie theater company tied its second-quarter earnings report with news that it is giving shareholders a special dividend on AMC preferred stock units.
AMC’s preferred stock will be traded on the New York Stock Exchange under the ticker symbol “APE” beginning August 22. AMC (target: AMC) said it will spend Rs 516.82 crore. APE shares – one for each share of common stock. The preferred stock would convert to common stock, but only if AMC’s shareholders vote to increase the number of shares of common stock authorized. Last year, AMC asked shareholders to increase the number of shares available, citing a lack of investor support.
Wall Street Journal, according to a person familiar with the matter, reported that the preferred equity units would allow the company to avoid restrictions on the sale of common stock. The magazine notes that the company could sell an additional 4.5 billion APE units after distributing the initial 517 million. AMC struggled through the pandemic, sell millions of shares in 2021 to help survive while the theaters remained closed.
The special dividend will go to shareholders of record on August 15. and will be paid by close of business on August 19. The ex-dividend date is August 22. If you sell AMC shares from August 16. 22, the person you sold to is entitled to the preferred stock, although AMC suggests investors trading during this period consult their broker.
A share or non-convertible token dividend has been a popular request from some AMC shareholders on sites like Twitter and Reddit. Users who call themselves “monkeys” often spread conspiracy theories about fake AMC and
shares. The magazine said, citing a person familiar with the matter, that the company hopes the dividend, which will go to legitimate shareholders, will dispel such theories about bogus shares. Shareholders of the AMC investor login site will also receive NFTs.
A spokesman for AMC did not return a request for comment on the magazine’s report.
In a statement, AMC CEO Adam Aron called the preferred dividend exclusively for shareholders “perhaps the single largest action we will take in all of 2022 to fundamentally strengthen AMC for the long term.”
“This new AMC preferred stock provides AMC with currency that can be used to strengthen our balance sheet in the future, including repaying debt or raising new equity,” Aron said. “Therefore, this greatly reduces any near-term risk to AMC’s survival as we continue to fight this pandemic.”
AMC also reported second-quarter net income of $121.6 million. $1.2 billion loss, or 24 cents. share of USD income. Analysts had expected $1.17 billion, according to FactSet. The company’s non-GAAP net loss was 20 cents per share, beating consensus estimates for an adjusted loss of 23 cents per share, according to FactSet. Aron noted that investments in Nevada gold and silver miner Hycroft Mining ( HYCM ) led to write-downs. Hycroft shares fell more than 48% during the quarter.
Aron noted that 59 million people visited AMC worldwide, a 168% increase over 2021. in the second quarter. He also said food and beverage revenue per visitor was $7.52, up from $5.58 in 2019. pre-pandemic level.
AMC shares fell 4.9% in after-hours trading.
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