AMC Entertainment Plans ‘APE’ Preferred Stock Dividend. Shares Slide After Earnings. & More

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Investors will obtain a most well-liked share for every share of frequent inventory they personal.


Jeenah Moon/Bloomberg

AMC Entertainment

is lastly giving the “apes” what they need. The movie-theater firm paired its second-quarter earnings report with information that it’s giving shareholders a particular dividend of AMC Preferred Equity Units.

The AMC most well-liked shares will commerce on the New York Stock Exchange below the ticker “APE” beginning Aug. 22. AMC (ticker: AMC) mentioned it will difficulty 516.82 million APE shares—one for each share of frequent inventory excellent. The most well-liked shares could be convertible to frequent shares, however provided that AMC shareholders vote to extend the variety of approved shares of frequent inventory. AMC final yr pulled a request to shareholders to extend its potential share depend, citing a scarcity of assist amongst buyers.

The Wall Street Journal, citing an individual accustomed to the matter, reported that the popular fairness items would allow the corporate to work round constraints positioned on promoting frequent shares. The agency may promote a further 4.5 billion APE items after handing out the preliminary 517 million, the Journal notes. AMC struggled amid pandemic, promoting thousands and thousands of shares in 2021 to assist keep afloat whereas theaters remained shut down.

The particular dividend will go to shareholders of report on Aug. 15, and be paid on the shut of enterprise on Aug. 19. The ex-dividend date is Aug. 22. If you promote your AMC shares between Aug. 16 and Aug. 22, the individual you offered to is entitled to the popular shares, although AMC suggests buyers buying and selling throughout this era seek the advice of their dealer.

A share or non-fungible token dividend has been a well-liked request amongst some AMC shareholders on websites like Twitter and Reddit. Such customers, who name themselves “apes” typically unfold conspiracy theories about pretend AMC and

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shares. The Journal, citing the individual acquainted, reported that the corporate hopes the dividend, which will probably be given to reliable shareholders, will put such theories about pretend shares to relaxation. Shareholders on AMC’s investor join website can even obtain an NFT.

An AMC spokesman didn’t return a request in search of touch upon the Journal report.

AMC CEO Adam Aron, within the announcement, referred to as the popular dividend solely to shareholders “perhaps the single biggest action we will take in all of 2022 to fundamentally strengthen AMC for the long term.”

“This new AMC Preferred Equity gives AMC a currency that can be used in the future to strengthen our balance sheet, including by paying down debt or raising fresh equity,” Aron mentioned. “As a result, this dramatically lessens any near-term survival risk for AMC, as we continue to work our way through this pandemic.”

AMC additionally reported a second-quarter internet lack of $121.6 million, or 24 cents a share on income of $1.2 billion. Analysts have been anticipating gross sales of $1.17 billion, in keeping with FactSet. The agency’s non-GAAP internet loss was 20 cents a share and topped consensus estimates for an adjusted lack of 23 cents a share, in keeping with FactSet. Aron famous its funding in Nevada gold and silver miner Hycroft Mining (HYCM) led to write-downs. Hycroft shares fell greater than 48% throughout the quarter.

Aron famous AMC’s international attendance hit 59 million individuals, up 168% from the second quarter of 2021. He additionally mentioned meals and beverage income per patron was $7.52, up from $5.58 within the comparable prepandemic quarter of 2019.

AMC inventory was down 4.9% in after hours buying and selling.

Write to Connor Smith at connor.smith@barrons.com

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