AMC Entertainment Holdings shareholders cast a favorable vote on Tuesday to convert the company’s preferred APE shares into common shares and execute a one-for-ten reverse share split. As a result, AMC’s stock lost 15 percent of its value by the end of the day.
AMC introduced APE stock in August in an attempt to settle its outstanding debt. However, the shares have lost 70 percent of their value since, and the company decided it was time to move on from it sooner than later. The conversion vote was passed with 88 percent of the cast votes, and the reverse stock split vote also received similar backing.
The two major changes are expected to help the company make its stock more attractive to investors.
“This is a landslide victory that shows your determination to keep AMC a strong and innovative company and the leader of our industry,” AMC CEO Adam Aron said after the vote.
The company previously reported disappointing quarterly earnings that saw its revenue drop from $1.17 billion to $990.4 million compared to the same period the year before. Its net loss also increased from $134.4 million to $287.7 million.
AMC shares opened at $5.46 per share on Tuesday but dropped to $4.64 per share to close the day. This marks the stock’s lowest value since mid-February.