AMC Chief Stands Behind Controversial APE Stock, But Emphasizes Restraint
thewrap.comAmid an earnings report that noted another quarterly loss despite increased revenue, for which the AMC CEO partially blamed a lack of high-performing theatrical releases, AMC reported that its controversial “at the market” equity program had resulted in 14.9 million shares of its “Preferred Equity Units” since September 2022.
AMC activated pre-existing shareholder approval months ago to issue preferred equity units, known as APEs. The plan was to issue 425 million such APEs and use proceeds to pay down some of its $5.5 billion in debt.
The Preferred Equity Units (NYSE: APE) have raised just $36.4 million in net proceeds. Aron otherwise urged caution and promised restraint, even as he noted likely strong grosses for films like “Black Panther: Wakanda Forever” (opening Friday) and “Avatar: The Way of Water” (opening December 16). “I own more stock than anyone else on this call,” the AMC head stated. “As you watch the share price, I watch the share price.
He noted that while the APE stock was lower than in June of 2021 (an all-time high of $77, partially due to inflated trading from would-be AMC fans at the peak of the meme-stock surge), it’s higher than it was in January of 2021.
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