AMC investors will become APE, company announces

You might remember our friends at AMC, the theater chain with the pantsless CEO, who leaned all the way in on the same stock thing. Hordes of eager retail investors may have saved AMC from crippling debt. AMC now hopes to mine them again to create more shares of the company.

This quarter, AMC announced a dividend for shareholders: AMC Preferred Equity Units, which will trade as APE on the New York Stock Exchange. One of these babies will exist for every common stock and can be converted into common stock if the company and investors vote for it to happen.

That “if” is a bit sticky though. You see, AMC wanted to sell more stock and got shot down by investors. Maybe those investors didn’t want to be further diluted — AMC sold a lot of stock during the pandemic. Maybe something else was at play. But APE, the solution, isn’t just a good marketing ploy to grab retail’s attention. It’s a tailspin around investors who voted against more stocks. After giving about 5 million APE shares to investors, AMC can sell 4.5 billion larger market units, The Wall Street Journal reports.

The news fell after the Stock Exchange. Shares of AMC closed at $18.66 today, and after market shares fell nearly 8% to $17.16 as of 5 p.m. ET, suggesting investors aren’t really excited about the plan. Or maybe they just didn’t like the company’s earnings numbers, also released today: AMC’s revenue hasn’t recovered from the pandemic.

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