An AMC Theatre on March 29, 2023 in New York City.
Leonardo Munoz | Corbis News | Getty Images
AMC Entertainment shares plummeted more than 20% on Tuesday, slipping to a new 52-week low of $2.46 per share, as investors brace for a stock conversion later this week.
On Friday, the movie theater chain’s preferred equity units, dubbed APE shares, are set to be transformed into common stock just one year after they began trading on the New York Stock Exchange.
These preferred equity units are a workaround, of sorts, and free AMC up to sell additional units of stock after investors who feared dilution rejected the company’s efforts to issue additional stock last year. AMC raised billions during the Covid pandemic selling new stock, which aided the company in paying off its debts and staved off bankruptcy during a time when movie theaters were closed or had limited product to screen to audiences.
AMC also is planning a 10-to-1 reverse stock split of its common stock on Thursday.
The company’s…
2023-08-22 13:43:18
Source from www.cnbc.com