Earlier this month, CEO Adam Aron announced that one AMC Preferred Equity share — or APE, named after the meme traders that jolted the company’s stock price last year — would be granted for each common share held, meaning that 517 million APE shares would be created.
Aron has argued that since the shares are going to already existing shareholders rather than going directly on sale, APEs will not dilute AMC’s stock value.“With the creation of APEs, AMC is deeply and fundamentally strengthening our company.
Given the flexibility that APEs will give us, we will likely be able to raise money if we need or so choose, which immensely lessens any survival risk as we continue to work our way through this pandemic to recovery and transformation,” Aron said in the letter announcing the creation of the APEs.
But Wall Street’s fears have not been assuaged, as AMC stock plummeted to $11/share at time of writing after finishing last week at $18/share.
Read more on thewrap.com
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