AMC Plummets as Court Approves APE Share Conversion
Aug 14, 2023 By MarketDepth
AMC Entertainment Inc (AMC:NASD) shares have nose dived Monday as the court approved a share conversion plan for APE. The company gained significant notoriety coming from the pandemic days thanks in part to “Wallstreetbets”. As the company saw a surge in attendance as the pandemic restrictions started to come off they were in a battle to continue the revenue growth.
AMC fell almost 40% intraday as a Deleware court over the weekend approved a merger with AMC and APE (AMC Preferred Shares). To add onto the chaos a 10-1 reverse split is happening on August 24. Investors are fearful that the merger will chaos a dilution in there shares and decided to sell causing the stock to plummet.
“AMC should now be able to raise additional equity capital. We can use this access to equity capital to shore up our cash reserves, pay down debt, invest in growth initiatives to strengthen our operating profitability and pursue transformative merger and acquisition opportunities.”AMC CEO Adam Aron written in a letter to investors Sunday