![]() The cinema has previously used the now-defunct APE shares to pay off $548 million in debt.ĪMC’s latest earnings report for the second quarter was a bright spot against a dismal performance for the stock. It’s all being fought to pay off some of AMC’s considerable debt mountain, which Bloomberg puts the figure at $9.5 billion. If anyone thinks AMC wants to get into a litigation fight with its shareholders over conversion plans and stock sales for fun, they’re wrong. The news also wiped out a 20% rally seen earlier in August after optimism over a surge in cinema footfall after smash hits like the Barbie movie and the announcement that AMC would be the theatrical distributor for Taylor Swift’s new concert movie. The previous record-low stock price close was $10.73, seen in January 2021, with Wednesday’s close considerably under that. Wednesday’s drop was the biggest one-day sell-off AMC stock has seen since February 2021. That’s on top of a 35% share price slide that happened after AMC converted its stock in August, taking AMC’s share price down 83.7% since the start of the year. What was the market reaction?ĪMC shares closed at a record low on Wednesday, plunging 37% to hit a price of $8.62. The logic behind this is that increasing AMC’s share price through the split gives the struggling cinema chain more wiggle room to prop up its balance sheet. AMC has also completed a reverse stock split that left shareholders with one share for every ten they previously held. Under the agreement, AMC will provide an estimated $129 million of stock to common shareholders to nix any legal claims about the stock conversion plan in the bud.Īs part of the equity distribution agreement approved by the courts, AMC can sell about 390 million new common stock shares worth about $3.4 billion. ![]() The units had only been publicly traded on the New York Stock Exchange for a year, and the conversion only went ahead after a settlement was reached with its shareholders. The plan was initially shared back in March, quickly drawing the ire of AMC shareholders and sparking litigation. In August, it was announced that the struggling cinema chain had successfully converted its preferred equity units, called APE shares (after the 2021 AMC memestock craze, believe it or not), into AMC common stock. What else is happening with AMC stock?Ī more straightforward question to answer might be, what isn’t happening? Before this week’s announcement, a flurry of activity in AMC stock in recent weeks has left investors uneasy. That attitude helped AMC survive the pandemic, but now, investors have had enough. Since then, AMC has capitalized on the stock’s newfound notoriety by regularly issuing new shares to raise capital. ![]() AMC previously reached memestock status in 2021 when Reddit retail traders bought up the stock while it was heavily shorted.
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