AMC STOCK RISES 20% AS APE UNIT IS READY TO MAKE DEBUT
AMC closed last Friday at 18.02 but after a split dividend stock should have opened at 9.01
AMC Entertainment Last Friday's close was $18.02, the split this morning should be $9.01 at the current price this would make AMC Entertainment up well over 20% in pre-market.
As per the company, a special dividend will be paid to shareholders today (19th August 2022). Here's how it works.
From Monday onwards, existing shareholders of AMC Entertainment Holdings Inc-Class A (AMC) will receive an extra preferred equity share under the ticker name "APE". In a way, it is similar to a 2-for-1 stock split. Shareholders holding one equity share in AMC Entertainment as of today shall receive an extra preference share and hence the company prefers to call it AMC Preferred Equity Share (APE).
Why is AMC issuing Preferred Equity Units?
CEO Adam Aron notes that the new preferred equity will provide AMC with a currency it can use to strengthen its balance sheet in the future, including to pay down debt or raise new equity. In 2013, shareholders approved the issuance of AMC Preferred Equity Units via a formal approval, according to AMC Investor Relations.
Can I convert $APE to common shares?
While each APE has the same rights as a common share, and it can be converted into common stock, the conversion decision is solely up to the shareholders. AMC Entertainment stockholders must vote to authorize the issuance of additional common shares at a future stockholders' meeting before a conversion can occur."
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