AMC

2022 - 8 - 23

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AMC Entertainment Stock Plunges As Its APE Securities Debut On ... (Deadline)

The stock was expected to dip ahead the new issue but it's still a messy market for exhibition and meme stocks.

By sending the stock flying during Covid at a crucial time, they allowed AMC to raise cash by selling shares at the inflated prices and helping it to stay financially solvent. APES are good for the company in that AMC now has a new currency it can uses to 1) strengthen its balance sheet, including reducing debt and other liabilities, and 2) invest in “shareholder value-enhancing and transformative M&A investment opportunities.” Aron has hinted that could include theaters eventually shed by Regal. AMC became a meme poster boy in early 2021 when opinionated, vocal retail investors poured into the stock to help it rise and crush short sellers, who bet the shares would fall. expect that the price of a stand-alone share of common stock logically should at least initially decline, however that investor’s economic interest will be the sum of the price of a share of common stock plus the price of an APE,” AMC said. Furthermore, we see an attractive setup for the exhibitors heading into the stronger film slates of 4Q22 and 2023 given the positive attendance and per patron spending dynamics over the past 6-12 months,” said Eric Wold of B. Remember that with the APE already having had its first NYSE trade today, the value now of your AMC holdings consists of the prices of your AMC shares and your new APE units COMBINED. [Cineworld](https://deadline.com/tag/cineworld/), confirmed it may file for Chapter 11 in the U.S. Cineworld has about $9 billion in debt, a big chunk of that acquired when it bought Regal in 2018 for $3.6 billion. Add together an AMC share plus a new APE unit, compared to just an AMC share before. But analysts who follow the sector view Cineworld’s balance sheet concerns as a company-specific issue. (Apes are also slang for amateur investors, who piled into AMC in 2021.) A report said the security was halted briefly after trading up to $9.49.

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Meme stock mayhem: AMC plunges on Regal Cinema bankruptcy ... (Fortune)

You've got to give meme stock traders credit for one thing, at least. They certainly keep the markets interesting. Shares of AMC plunged in early trading ...

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AMC Preferred Stock Starts Trading in Middle of Meme Volatility (Bloomberg)

AMC Entertainment Holdings Inc.'s preferred stock made its debut Monday amid a selloff in other meme stocks and the broader market, making for a volatile ...

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AMC stocks drop sharply as investors sour on 'meme-stock' rally (The Guardian)

The “meme-stock” reprise of 2022 took another beating on Monday as shares in the movie theatre chain AMC, one of the companies driven to dizzying heights by ...

Since 2015, stock in Bed, Bath & Beyond has dropped from $77 a share to around $10. The The performance of the two cinema companies is strikingly different.

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AMC goes 'APE' as equity units make trading debut (MarketWatch)

AMC Entertainment's AMC Preferred Equity Units, or APEs, are creating something like a stock split and sending the cinema stock lower.

“In any case, we don’t think Cineworld’s issues indicate the same for AMC or Cinemark, as the latter companies are better positioned with more cash available.” The APE special dividend should also make AMC a stronger company, he added. “In the absence of any other noise, AMC shares should be down around 50% (to $9) with APE shares rising to $9, given Friday’s AMC closing of $18.01,” she told MarketWatch. The idea that Cineworld’s bankruptcy is detrimental for AMC is way off the mark, according to Wedbush’s Reese. “However, given that the special dividend is similar to a 2-for-1 stock split, it makes sense to see AMC shares pressured with this issuance.” [The Wall Street Journal](https://www.wsj.com/articles/regal-cinemas-owner-cineworld-prepares-for-bankruptcy-filing-11660910944?page=1&mod=article_inline&mod=article_inline&mod=article_inline) that U.K. “We keep seeing articles that Cineworld’s bankruptcy is a negative for AMC and the industry, but I fail to see how that’s the case,” she told MarketWatch. cinema chain Cineworld Group PLC [CNWGY, -32.11%](/investing/stock/CNWGY?mod=MW_story_quote) [CINE,](/investing/stock/CINE?countryCode=UK&mod=MW_story_quote), the parent of Regal Entertainment Group, was -21.36% [preparing to file for bankruptcy](https://www.marketwatch.com/story/movie-theater-operator-stocks-fall-after-wsj-report-that-uks-cineworld-is-preparing-for-bankruptcy-2022-08-19?&mod=article_inline&mod=article_inline&mod=article_inline). “They both have the same economic value,” he said. “However, there is likely to be some short-term impact from index funds readjusting for this issuance as the APEs are not included in the indices, but the common shares are included.” “I suspect that will be the case with the APE shares going forward,” he added. AMC shares, which have fallen 59.3% this year, have declined 4.3% over the last three months.

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Meme stocks fall with AMC, Bed Bath in red (Reuters)

A clutch of stocks favored by retail traders tumbled on Monday in volatile trading as news that UK-based Cineworld warned of a possible bankruptcy sent AMC ...

[(BBBY.O)](https://www.reuters.com/companies/BBBY.O), was down 3%, continuing Friday's 40.5% slump after billionaire Ryan Cohen abruptly dumped his stake in the struggling retailer. "The AMC distribution of “APE” is somewhere between a stock split and a stock dividend," Rick Meckler at Cherry Lane Investments. The COVID-19 lockdowns severely impacted the business of cinema operators. This seems designed to effectively allow for the issuance of more equity by AMC without technically breaking the company’s promise to not issue more common shares further potentially diluting their value." "So you had similar investors in Bed Bath and Beyond and Gamestop and AMC.” AMC and APE shares were together trading at $17.14, which was below than AMC's last closing price of $18.02, according to Reuters calculations. AMC common shares were nearly 40% lower at $10.93. movie chain's preferred shares started trading. [(GME.N)](https://www.reuters.com/companies/GME.N). Register now for FREE unlimited access to Reuters.com [(CINE.L)](https://www.reuters.com/companies/CINE.L) warned of a possible bankruptcy sent AMC Entertainment Holdings' shares [(AMC.N)](https://www.reuters.com/companies/AMC.N)diving almost 40% on the day that the U.S. [(BBBY.O)](https://www.reuters.com/companies/BBBY.O) and GameStop Corp [(GME.N)](https://www.reuters.com/companies/GME.N) also slid as AMC's preferred stock, trading under the ticker "APE", opened at $6.21 on the New York Stock Exchange.

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Wedbush lowers AMC price target to $2 following APE share release (CNBC)

Wedbush lowered its AMC price target to reflect more shares after it issued APE, its preferred equity stock.

"We note that at the August 22 closing price of $6, AMC would have to issue over 900 million shares of APE to repay its entire debt balance," Reese wrote. Reese also noted that the Cineworld bankruptcy should not impact AMC as it doesn't relate to negative industry dynamics. "While it makes little sense for APE to trade below AMC, we think that it reflects concerns over impending dilution," Alicia Reese wrote in a Tuesday note. On the first day of APE trading, combined shares lost $800 million in enterprise value from Friday's closing price of $18.01, according to the note. AMC closed at $10.46 while APE ended the day at $6. "AMC is pre-authorized to issue up to 4.5 billion additional preferred shares of APE to raise cash."

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Explainer: How meme stock darling AMC's new preferred shares work (Reuters)

AMC Entertainment Holdings Inc , the movie theater operator that investors have turned into a meme stock, completed the listing of its new preferred shares ...

AMC tried to boost the popularity of the preferred shares with investors ahead of their launch. It did not need to seek shareholder approval for the preferred share issue because it relied on an authorization granted to its board by its former owner, China's Dalian Wanda Group when it listed in 2013. The Leawood, Kansas-based company has declined to comment on when it might sell preferred shares to raise money. The preferred shares have the same voting power and right to a dividend as common shares. AMC could sell common shares but it requires shareholder approval to do so. AMC said its board can authorize the issuance of up to 5 billion preferred shares but it has so far approved only 1 billion.

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Image courtesy of "The Wall Street Journal"

Stock Market Today: Dow Closes Down 643 Points, AMC Stock ... (The Wall Street Journal)

Shares of AMC Entertainment Holdings fell on Monday morning, reflecting the payment of a special dividend of preferred equity units–APEs– to shareholders ...

analysis as of March going back to 1980.\n\nAMC and APE both were halted several times during the morning session, as common shares gapped down while the preferred equity units shot up, converging to where traders are seemingly pricing "fair value" for ownership of the company. Shares of AMC Entertainment Holdings fell on Monday morning, reflecting the payment of a special dividend of preferred equity units–APEs– to shareholders after Friday’s close.\n\nThis sort-of stock split makes it slightly confusing to compare Monday's prices with the predividend prices that prevailed Friday, but a quick tally shows that AMC holders are up since Friday.\n\nWith common shares of AMC trading at $11.05 and APE trading at $7.55 the combined value of the two securities is now $18.60, or 3% higher than Friday’s closing level in AMC stock of $18.02. That says AMC’s August rally is continuing, at least for now, though we shall see what happens if the market keeps falling Monday.\n\nIt is not uncommon for shares to receive a boost from investors after a stock split.

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Meme stock lifelines show signs of fragility: AMC and Bed Bath ... (Axios)

Companies that look like they had a new lease on life courtesy of the meme stock movement are suddenly being forced to ponder their prospects without retail ...

[White House: Climate law could slash related damages by up to $1.9 trillion](/2022/08/23/climate-law-slash-damages-up-to-2-trillion) [Whistleblower complaint alleges Twitter deceived regulators](/2022/08/23/whistleblower-complaint-twitter-regulators) GDP](https://www.npr.org/2022/04/07/1091258821/the-future-cost-of-climate-inaction-2-trillion-a-year-says-the-government#:~:text=The%20economy%20could%20shrink.&text=Based%20on%20current%20warming%20trends,%242%20trillion%20in%20today's%20dollars.) by the end of the century, [reports have warned](https://www.axios.com/2022/05/23/report-steep-costs-climate-inaction). [last month filed](https://www.axios.com/2022/08/23/whistleblower-complaint-twitter-regulators) a 200-page whistleblower report with Congress and various federal agencies, as first reported by [CNN](https://edition.cnn.com/2022/08/23/tech/twitter-whistleblower-peiter-zatko-security) and [the Washington Post](https://www.washingtonpost.com/technology/interactive/2022/twitter-whistleblower-sec-spam/). But being a meme stock darling could be fickle business. [reported](https://www.cnbc.com/2022/08/22/amcs-new-ape-units-are-a-meme-friendly-way-to-raise-cash-fast.html). [end his $44 billion takeover](https://www.axios.com/2022/05/17/elon-musk-twitter-timeline) bid in a Delaware court this fall. [Twitter whistleblower complaint could help Elon Musk](/2022/08/23/twitter-whistleblower-complaint-could-help-elon-musk) [targeting the same-old stocks](https://www.bloomberg.com/news/articles/2022-08-17/wallstreetbets-founder-says-back-to-school-spurs-meme-mania-anew). [grappling with the effects of the pandemic](https://www.axios.com/2022/08/19/movie-theaters-suffering-from-hollywoods-slow-summer)and facing stiff competition from movie streaming services like Netflix, Disney+ and HBO Max. [already skeptical credit markets](https://www.wsj.com/articles/bed-bath-beyonds-fizzling-rally-narrows-options-for-cash-infusion-11661160602). [Economy & Business](https://www.axios.com/economy-business)

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AMC falls after Cineworld's bankruptcy warning on day 'APE' starts ... (Reuters)

AMC Entertainment Holdings' shares tumbled nearly 30% on Monday after UK-based Cineworld's warning of a possible bankruptcy spooked investors on the same ...

The COVID-19 lockdowns severely impacted the business of cinema operators. AMC's preferred stock, trading under the ticker "APE", opened at $6.95 on the New York Stock Exchange on Monday. Register now for FREE unlimited access to Reuters.com

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AMC Shares Fall 42% as APE Units Start Trading (Investopedia)

Shares of AMC (AMC) fell 42% yesterday as its new APE preferred shares began trading, while major cinema operator Cineworld warned of potential bankruptcy.

AMC CEO Adam Aron told investors that the value of their investment in AMC is the combination of AMC shares and the new APE units. AMC shareholders have resisted new share offerings in the past due to The company's CEO also said the cash could be used for Cineworld shares fell over 33%. Rival Cineworld, which owns Regal Cinemas, said yesterday it was considering filing for bankruptcy, adding to industry worries. AMC’s APE units debuted yesterday after being distributed to investors as a special dividend.

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Explainer-How meme stock darling AMC's new preferred shares work (CNA)

AMC Entertainment Holdings Inc, the movie theater operator that investors have turned into a meme stock, completed the listing of its new preferred shares ...

AMC tried to boost the popularity of the preferred shares with investors ahead of their launch. CEO Adam Aron cited investor opposition to more common stock sales, and AMC has not sought shareholder approval for a sale since. It did not need to seek shareholder approval for the preferred share issue because it relied on an authorization granted to its board by its former owner, China's Dalian Wanda Group when it listed in 2013. The Leawood, Kansas-based company has declined to comment on when it might sell preferred shares to raise money. AMC said its board can authorize the issuance of up to 5 billion preferred shares but it has so far approved only 1 billion. The preferred shares have the same voting power and right to a dividend as common shares.

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AMC Entertainment's preferred stock dividend is completed (The New York Times)

The company billed the arrangement as a new way to raise money. Corporate governance experts and finance pros are keen to see if it catches on.

The APE units have the same voting rights as common stock, but are trading at a discount. “It’s all legal and by the book.” Corporate governance experts and finance pros are keen to see if it catches on more broadly for other companies struggling to raise cash, But earlier this year, shareholders rejected management’s request to issue yet more common stock, worried about further diluting their holdings. AMC Entertainment aimed to cash in on its buzzy popularity on Monday with a special dividend that’s being closely watched by meme-stock traders and market watchers. Corporate governance experts and finance pros are keen to see if it catches on.

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AMC finds a loophole with its new preferred 'APE' share class—but ... (Fortune)

The theater-chain introduced a new preferred stock class—which it could use in the future to raise cash—after it could no longer issue more common stock ...

While APE shares may dress like AMC common shares and walk like common shares—under the hood they technically diverge. While the APE shares are in a different class and have different names, they could in theory be converted in the future to one common share of AMC. While the move will bring in cash for the company, shareholders objected to AMC’s original plea to issue more common stock for a reason. Thus far, the company has not made plans to convert APE shares to AMC common stock. If shareholders embrace APE stock shares with open arms, the price could theoretically rise above AMC common stock. The creation of more shares will theoretically lower the price of each share because the company is still worth what it was prior to the new shares being issued, but there are double the shares in circulation. An AMC share plus a new APE unit added together—compared to just an AMC share previously,” Yet AMC’s new APE shares are designed to attract retail investors, so they function practically like common stock; they have the same economic and voting rights as AMC common shares. [lowered its price target](https://www.cnbc.com/2022/08/23/wedbush-lowers-amc-price-target-to-2-following-ape-share-release.html) from from $4 to $2 on Monday after the shares were issued and AMC stock plunged 40%. AMC could use a cash down the line to pay off its debt. The bottom line: APE units are an option to raise cash for the theater chain. However, AMC found a loophole—issuing an entirely new class of shares to take advantage of the enthusiasm of eager buyers.

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