What Exactly are AMC's New APE Units?

The special dividend is a clear effort from the theater company to appeal to retail investors who spend most of their time on r/wallstreetbets and playing Call of Duty. The real question is why did AMC pay this special dividend in particular and how does it actually function in relation to AMC Entertainment stock. For now, it looks like the movie theater company has delayed that outcome, thanks to some aggressive moves to stabilize its balance sheet. Investors aren’t sold on the strategy, however, and AMC stock has taken a beating. Unfortunately for AMC, a tenfold rise in stock price hasn’t held.

  1. While AMC pulled in nearly $1.2 billion in revenue during the quarter ended June 30, the company posted a net loss of $121.6 million, according to its second-quarter results Thursday.
  2. Antara also accepted 91 million APE units as payment for $100 million of AMC’s outstanding debt.
  3. The move could allow the company to raise additional cash down the road and reduce its debt.
  4. Instead, the firm found a workaround to sell billions of dollars worth of shares without needing shareholder approval in an effort to capitalize on the extreme hype AMC has received from meme investors.
  5. The company essentially rolled what was formerly 1 billion shares of APE into the AMC share count.

The company has applied to list this preferred entity on the New York Stock Exchange under the symbol “APE,” a nod to retail investors who helped save the world’s largest cinema chain from bankruptcy in early 2021. These preferred equity units are a workaround, of sorts, and free AMC up to sell additional units of stock as it continues to revive its business after the pandemic. After offering the 517 million APE units, AMC will still have around 4.5 billion units remaining that it could sell to raise funds. Theoretically, the shares should converge and trade at roughly the same price as APE units are convertible into AMC stock on a one-to-one basis. Additionally, APE units are preferred equity meaning they would be paid out first in a potential AMC bankruptcy.

AMC issued APE stock FAQ:

AMC can sell more in order to raise cash or pay down some of its $10 billion in debt and long-term liabilities. In a reverse stock split, the share count drops and the share price rises. A 1-for-10 reverse split like AMC’s should slash the share count to 10% and add a zero to the stock price. Banking services and bank accounts are offered by Jiko Bank, a division of Mid-Central National Bank.JSI and Jiko Bank are not affiliated with Public Holdings, Inc. (“Public”) or any of its subsidiaries. None of these entities provide legal, tax, or accounting advice. Additional information about your broker can be found by clicking here.

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Regal Cinemas’ bankruptcy warning spooks AMC investors.

Because, as you’ll see below, AMC investors have more to process than a reverse split. Rival Cineworld, which owns Regal Cinemas, said yesterday it was considering filing for bankruptcy, adding to industry worries. Last week, Cineworld had warned about its liquidity position, and that a slow recovery in theater attendance related to the effects of pandemic lockdowns and a lack of blockbuster movies would last through November. exness company review AMC Entertainment (AMC) has fully embraced its meme popularity with the release of a special dividend called “APE” units. The AMC Entertainment Holdings Preferred Equity Units (APE) were dividended at the end of last week to AMC shareholders and have already risen nearly 10% from their $6 opening price. Prior to that transaction, AMC had not split its stock, either positively or negatively, since it listed on the NYSE in 2013.

Lululemon Athletica Inc (LULU) Director Buys 1,167,000 in Shares

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The recent capital moves and the surprise $0.01 diluted EPS reported in the second quarter of 2023 may simply be too little, too late for AMC. That included $110 million from AMC’s creditor Antara Capital, LP. Antara also accepted 91 million APE units as payment for $100 million of AMC’s outstanding debt. AMC Entertainment (AMC) has dominated financial headlines for weeks and the good folks of Reddit aren’t to blame. The movie theater company is working through a complex plan to improve its balance sheet and reduce its interest expense burden. AMC Entertainment Holdings, Inc. operates as a holding company.

AMC’s APE Units Come at a Bad Time for AMC Stock

As noted, the company gave away one APE share for every one AMC share owned. While the two stocks had different tickers, they represented ownership in the same company. The stock paxful review dividend ultimately doubled AMC’s share count, just as a 2-for-1 stock split would. The APE conversion is AMC’s move to convert its preferred equity shares into AMC common stock.