AMC to issue preferred stock under the ticker symbol ‘APE’

AMC Entertainment seems to have discovered a inventive answer to enhance its share depend and lift funds after buyers balked at a proposal to issue extra shares final yr.

AMC on Thursday stated it plans to issue a dividend to all widespread shareholders in the type of preferred shares. The firm has utilized to listing these preferred fairness items on the New York Stock Exchange under the symbol "APE," a nod to the retail buyers who helped rescue the largest movie show chain in the world from the brink of chapter in early 2021, dubbed "apes."

Shares of AMC fell roughly 6% in prolonged buying and selling Thursday.

"Today we are rewarding and recognizing our passionate and supportive shareholders, both to our shareholders in the U.S. and internationally," CEO Adam Aron stated in an announcement. "Shareholders will receive one AMC Preferred Equity unit for each company issued share of AMC common stock that they own."

The AMC 25 Theatres in Times Square in New York is seen on Tuesday, July 8, 2014.Richard Levine | Corbis News | Getty Images

The firm expects to issue a dividend of round 517 million APE items later this month. The shares will begin buying and selling on Aug. 22. The new class of shares carries the identical voting rights as the present widespread shares, the firm stated in a launch.

AMC raised billions throughout the pandemic by promoting new stock however ran out of shares to promote. Investors, fearing dilution, rejected the firm's efforts to issue extra stock.

These preferred fairness items are a workaround, of types, and free AMC up to promote extra items of stock because it continues to revive its enterprise after the pandemic. After providing the 517 million APE items, AMC will nonetheless have round 4.5 billion items remaining that it might promote to elevate funds.

"With the creation of APEs, AMC is deeply and fundamentally strengthening our company," Aron stated in a separate shareholder letter issued Thursday. "Given the flexibility that APEs will give us, we likely will 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."

While AMC pulled in almost $1.2 billion in income throughout the quarter ended June 30, the firm posted a web lack of $121.6 million, in accordance to its second-quarter outcomes Thursday.

based mostly on web site supplies www.cnbc.com

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