![]() AMC TheatresĪMC is the largest movie exhibition company in the United States, the largest in Europe and the largest throughout the world with approximately 1,000 theatres and 11,000 screens across the globe. Why APE?įor those who don't follow social media, the preferred shares were named and given their symbol in deference to the "army" of reddit posters who ran AMC stock up last year as one of the "meme" stocks (like GME) and who call themselves "apes". This eventual equivalence is the basis for my speculative long position, but before I discuss that, let's look at a few more issues, including delving into the company itself. Moreover, if over time AMC issues more APE preferred shares, then these will outnumber the number of AMC shares making a positive vote that much more likely. However, at least in my opinion, if APE continues to trade below the AMC share price, and given that APE shareholders can vote on the Stock Amendment, eventually this vote will have to take place and I would assume it would be ratified since that would be in APE shareholders' best interest. So APE is intended to be equivalent to AMC common stock (though it would have a higher standing in the event of liquidation), but currently it isn't exchangeable because shareholders haven't yet voted on the Common Stock Amendment and no date has yet been set for this vote. Any dilution caused by future sales of AMC Preferred Equity Units could adversely affect the market price of the AMC Preferred Equity Units and the Common Stock.įor those who prefer tabular representations, this exhibit may also be helpful. The Company expects that the AMC Preferred Equity Units will serve as a "currency" to raise additional equity capital to strengthen its balance sheet, including debt repayments, and provide capital for opportunistic and value-enhancing and transformative acquisitions and/or investments.The holders of the AMC Preferred Equity Units will be entitled to vote on the Common Stock Amendment. ![]()
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