![]() ![]() The strategy involved setting up a "short squeeze" where they would short the stocks that big funds were betting against. These folks were able to bring up the share prices of AMC and GameStop. As a result, a few unique stocks (AMC, Bed Bath and Beyond and GameStop) became popular among those who assembled on the Reddit forum r/WallStreetBets. Retail investors were bored at home and looking for ways to band together. Then, the company shot up to over $30 billion when the meme stock craze peaked in mid-2021. There were fears that AMC would go bankrupt during the pandemic months when we weren't sure if folks would return to watching movies in person again.ĪMC had a market cap of about $450 million at the end of 2020. What’s the story with AMC and meme stock rallies?ĭuring the pandemic months, a meme stock mania took over the markets. The company also had issues with stock dilution and a series of film releases that didn’t include any major blockbusters due to the pandemic. Its already high debt went up during the early days of the pandemic when movie theaters were forced to shut down. It’s worth noting that Aron earned $18.9 million in 2021.ĭespite being the largest movie theater chain in the world, the company has been struggling to manage its debt load. With the steep decline in company shares in 2022, Aron is asking for his compensation to be frozen in 2023.Īron said, "I do not want 'more' when our shareholders are hurting." Aron also insisted that the other top executives with AMC forgo their hikes. The CEO announced a pay freezeĪdam Aron, the CEO of AMC, announced that he was asking the board for a pay freeze. The recent moves and attempts to win over investors have failed. AMC’s stock has a 52-week high of $34.33 and closed at $4.07 on December 30, down over 85% for the year. When looking at a chart of AMC’s stock price, it’s evident that this company has been through some extreme volatility. While the company has focused on investing in its theaters by adding movie screen upgrades and special effects, the news still came the day after a deal fell through for AMC to buy theaters from Cineworld. Several analysts aren't believers of this as they feel the company has more cash in hand than it did in 2019, but there's still a similar level of debt and no dividends. The stock split would mean that every shareholder would receive one share for every ten they own. AMC will hold a special meeting to vote on the 1:10 reverse stock split and the conversion of APE units into common stock.Īntara will hold onto its APE units for up to 90 days, but they will vote in favor of the proposals at this special meeting. The COVID-19 lockdowns financially crippled the company and put them in a dire position. Tryq About the Large Cap Kit | Q.ai - a Forbes company There will also be a vote regarding converting APE units into AMC shares. As a result of this proposal, they will have to hold a special meeting for APE and AMC shareholders to vote on this. AMC will hold a special meeting for APE and AMC shareholders to voteĪMC announced a proposed reverse stock split of shares at a 1:10 ratio. While stock splits are common, and we even saw them with major companies like Amazon and Tesla, reverse stock splits are rare. While the APE phrase is catchy, the reality is that AMC created the new preferred equity units because vocal investors criticized the company’s plan to raise funds by issuing more shares of its common stock. The actual APE acronym is aimed at the Reddit investors who refer to themselves as “apes” in what’s a slang term for the loyal folks on these forums who share stock tips. Antara will also exchange $100 million in debt for roughly 91 million APE units, allowing AMC to drop the annual interest expense by around $10 million.ĪPEs, short for AMC Preferred Equity, started trading last summer when the company looked for creative ways to raise capital to pay down its debt load that exceeded $5 billion.
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