AMC Entertainment Holdings posted a bigger-than-expected loss as expenses rose nearly 60% in the second quarter.
The company also said it will pay a special dividend in the form of preferred shares.
Shares from a once popular stock of memes are 7% lower in premarket trading as the move raised concerns about a potential downside to the stock.
AMC’s preferred shares can be converted into common shares if investors approve the move.
The Company will grant one preferred share for each AMC common share held.
AMC plans to list about 517 mln. preferred shares New York Stock Exchange under the symbol “APE”.
“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.” CEO Adam Aron said
Revenue for the quarter rose to $1.17 billion, beating estimates of $1.16 billion, and net loss of 24 cents per share beat market expectations of 21 cents, Refinitiv data showed.
|Ticker||Security||The last one||Change||Change %|
|AMC||AMC ENTERTAINMENT HOLDINGS INC||6:67 p.m||+0.46||+2.52%|
AMC’s market value has surged in the past year amid a rally fueled by retail investors, helping it raise billions of dollars in equity capital even at the cost of investor concerns about the stock’s depreciation.
During peak hours coronavirus pandemic, AMC suffered heavy losses as restrictions forced theaters to close again.
Reuters contributed to this report.