With its APE equity unit, AMC created something like a 2-for-1 stock split, marking the company’s latest effort in a fight over stock issuances. The company’s APEs made their trading debut in August. Over the past two years, AMC has been on a roller-coaster ride that took it from beleaguered pandemic victim to meme-stock phenomenon. AMC used the steep rise in its share price to tap into equity and debt markets, raising $917 million in January 2021. Now read: ‘Avatar’ ticket sales better than expected, says AMC CEO Adam Aron “If either proposal fails, there is no conversion of APE units into AMC common shares and, we would suspect, APE units could potentially decline to price levels at the time before the announcement on December 22 - or below $1.00,” the analyst added. We suspect the opportunity to raise billions of dollars in equity provides that path,” Wold wrote.
“With our projection that AMC is unlikely to turn positive until 2024 with multiple tranches of debt set to mature in the coming years within a higher interest rate environment, we believe debt reduction is top of mind with management. Related: ‘I am AMC’s largest retail shareholder’ says CEO Adam Aron, reiterating pledge to not sell more stockĪMC exited its fiscal third quarter with debt of $5.325 billion and with cash and cash equivalents of $684.6 million. “Assuming the current AMC stock price holds into the vote, the reverse stock split would open the door to roughly $22 in equity capital,” Wold wrote on Monday. The special meeting of shareholders is scheduled for March 14, 2023, according to Friday’s SEC filing. 22, 2022, that it was seeking a 1-for-10 reverse split of its common stock. “Not only could this help the company eliminate all balance sheet debt as the exhibition industry continues to recover, but it could allow management to pursue additional diversification options to drive incremental growth within the greater media industry.”ĪMC said on Dec. “Given that APE unit holders essentially control the vote at 64% of combined holdings and may not get another chance to extract value from those units, we expect the two proposals to pass and for this vote to open the door to a massive equity raising opportunity for the company in the coming years,” Wold wrote in a note released Monday. The S&P 500Īlso read: It’s National Popcorn Day - and AMC’s CEO is all over it In an SEC filing Friday, the movie-theater chain and meme-stock darling announced a special meeting of shareholders to increase the number of AMCĪuthorized shares from just over 524 million to 550 million and authorize a 1-for-10 reverse split of the company’s common stock, converting APEsĪMC’s stock fell 6.7% Monday, while the APEs rose 16.1%.
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