AMC investors will go APE, company announces
You may remember our friends at AMC, the theater chain with the pantsless CEOwho have leaned all the way in about the meme stock thing. Hordes of enthusiastic retail investors perhaps saved AMC from crushing debt. Now AMC hopes to tap them again to create more shares of the company.
this quarter, AMC announced dividend for shareholders: AMC Preferred Equity shares, which will trade as APE on the New York Stock Exchange. One of these babies will exist for any common stock and can be converted to common stock if the company and investors vote for it.
That “if” is a bit tacky though. Look, AMC wanted to sell more shares and was shot by investors. Perhaps those investors didn’t want to dilute further — AMC sold a lot of stock during the pandemic. Maybe something else was going on. But APE, the solution, isn’t just a fun marketing ploy to grab retail attention. It’s an end to the investors who voted against more stocks. After giving approximately 5 million shares of APE to investors, AMC can sell 4.5 billion units in the wider market, The Wall Street Journal reports.
The news was released after market. AMC shares closed at $18.66 today and after market shares fell nearly 8 percent to $17.16 at 5 p.m. ET, suggesting investors aren’t exactly thrilled with the plan. Or maybe they just didn’t like it the company’s profit figuresalso released today: AMC revenue has not recovered from the pandemic.