AMC previously saw its plan for conversion of APE halted by a Delaware judge Morgan T. Zurn back in July. However, the decision has now been reversed, and the company will be able to go through with its plan. APE stock will stop trading on August 25.

According to a recent filing with U.S. Securities and Exchange Commission (SEC), AMC also plans to issue a 1-to-10 reverse stock split. Shareholders will receive one share for every 10 shares they own, but the new shares will be more valuable. The reverse stock split will be executed on August 24.

The news about APE conversion approval didn’t sit well with investors, who started selling off their holdings due to fear that the move would cause a dilution of the stock. AMC shares closed at $5.26 per share on Friday before plunging as low as $3.30 at one point on Monday.

AMC believes that the APE conversion will represent a turning point for the company.

“AMC should now be able to raise additional equity capital,” CEO Adam Aron wrote in a letter sent to investors over the weekend. “We can use this access to equity capital to shore up our cash reserves, pay down debt, invest in growth initiatives to strengthen our operating profitability, and pursue transformative merger and acquisition opportunities.”

The post AMC Stock Plunges After Court Approves APE Conversion appeared first on theprimarymarket.com.

The theater chain started issuing APE in early 2022 as a way to raise capital and pay its outstanding debt of $5.4 billion. It also intended to use funds for other operative costs. APE stock traded at $6.95 at one point before tumbling down.

The company has been trying to convert the APE shares into common stock for a while but has met with resistance from a portion of shareholders, who were concerned about the possible dilution of their holdings. This resulted in a shareholder lawsuit and AMC’s attempt to settle with them.

AMC’s original settlement proposal, believed to be worth more than $100 million, aimed to push the conversion plan through while addressing the concerns of the shareholders. However, now that Zurn rejected the settlement, the company will be forced to go back to the drawing board.

AMC class A shares closed at $4.40 per share on Friday, being 12% up year-to-date. After the ruling was made public, the stock jumped to $8.13 per share at one point in after-hours trading.

The post AMC Shares Jump 63% After Delaware Judge Blocks Stock Conversion appeared first on theprimarymarket.com.

AMC started issuing the preferred stock in late 2022 in an attempt to raise funds and boosts its share count. However, the company’s actions were met with a suit from a group of investors who believed that AMC was trying to curb the voting power of common shareholders.

As a result of the settlement, the plaintiffs will receive one share for every 7.5 shares they own. The value of the agreement is expected to be north of $100 million.

While the APE stock initially provided a boost to the company, the preferred shares ended up losing more than 70% of their value following the creation. This prompted a decision in March to convert the preferred shares into common shares, followed by a reverse stock split.

AMC common stock fell down to $3.78 per share in after-hours trading compared to Monday’s close price of $5.11. On the other hand, the preferred shares saw a 22% jump in the same period.

The post AMC Common Shares Plunge Following Stock Conversion Settlement appeared first on theprimarymarket.com.

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.

The post AMC Stock Plunges Following Positive APE Shares Conversion and Reverse Stock Split Vote appeared first on theprimarymarket.com.

AMC previously saw its plan for conversion of APE halted by a Delaware judge Morgan T. Zurn back in July. However, the decision has now been reversed, and the company will be able to go through with its plan. APE stock will stop trading on August 25.

According to a recent filing with U.S. Securities and Exchange Commission (SEC), AMC also plans to issue a 1-to-10 reverse stock split. Shareholders will receive one share for every 10 shares they own, but the new shares will be more valuable. The reverse stock split will be executed on August 24.

The news about APE conversion approval didn’t sit well with investors, who started selling off their holdings due to fear that the move would cause a dilution of the stock. AMC shares closed at $5.26 per share on Friday before plunging as low as $3.30 at one point on Monday.

AMC believes that the APE conversion will represent a turning point for the company.

“AMC should now be able to raise additional equity capital,” CEO Adam Aron wrote in a letter sent to investors over the weekend. “We can use this access to equity capital to shore up our cash reserves, pay down debt, invest in growth initiatives to strengthen our operating profitability, and pursue transformative merger and acquisition opportunities.”

The post AMC Stock Plunges After Court Approves APE Conversion appeared first on theprimarymarket.com.

The theater chain started issuing APE in early 2022 as a way to raise capital and pay its outstanding debt of $5.4 billion. It also intended to use funds for other operative costs. APE stock traded at $6.95 at one point before tumbling down.

The company has been trying to convert the APE shares into common stock for a while but has met with resistance from a portion of shareholders, who were concerned about the possible dilution of their holdings. This resulted in a shareholder lawsuit and AMC’s attempt to settle with them.

AMC’s original settlement proposal, believed to be worth more than $100 million, aimed to push the conversion plan through while addressing the concerns of the shareholders. However, now that Zurn rejected the settlement, the company will be forced to go back to the drawing board.

AMC class A shares closed at $4.40 per share on Friday, being 12% up year-to-date. After the ruling was made public, the stock jumped to $8.13 per share at one point in after-hours trading.

The post AMC Shares Jump 63% After Delaware Judge Blocks Stock Conversion appeared first on theprimarymarket.com.

AMC started issuing the preferred stock in late 2022 in an attempt to raise funds and boosts its share count. However, the company’s actions were met with a suit from a group of investors who believed that AMC was trying to curb the voting power of common shareholders.

As a result of the settlement, the plaintiffs will receive one share for every 7.5 shares they own. The value of the agreement is expected to be north of $100 million.

While the APE stock initially provided a boost to the company, the preferred shares ended up losing more than 70% of their value following the creation. This prompted a decision in March to convert the preferred shares into common shares, followed by a reverse stock split.

AMC common stock fell down to $3.78 per share in after-hours trading compared to Monday’s close price of $5.11. On the other hand, the preferred shares saw a 22% jump in the same period.

The post AMC Common Shares Plunge Following Stock Conversion Settlement appeared first on theprimarymarket.com.

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.

The post AMC Stock Plunges Following Positive APE Shares Conversion and Reverse Stock Split Vote appeared first on theprimarymarket.com.