The biggest movie theater chain faces weakness as AMC Entertainment’s fall Hollywood movie “Apes” is swinging on Wall Street. “Apes” is the moniker of the franchise’s most avid retail investors and also a symbol for the company’s preferred stock.
The world’s largest cinema operator issued an EPA earlier this month as a special dividend to existing shareholders.
Each unit of AMC preferred stock is designed to have the same economic and voting rights as common stock. They can only be converted into shares if AMC and its investors vote to increase the number of shares entitled to offer.
AMC is estimated to issue 516.8 million units of APE based on outstanding shares.
The company has issued APE units to reward its Ape retail investors who saved the company from possible bankruptcy during the AMC shutdown during the coronavirus pandemic. The monkeys visited the WallStreetBets subpage to boost shares.
shares fell as low as $1.98 on January 5, 2021, before peaking at $62.55 on June 2.
AMC continues to face significant challenges. As of June 30, total assets were $9.8 billion versus liabilities of $12.1 billion.
UK rival Cineworld, owner of Regal Cinemas and other properties, has warned it could file for bankruptcy due to a limited number of films that will run until November.
AMC Adam Aron agreed that the expected third-quarter release schedule is “relatively weak” but said “we continue to be fairly optimistic about growing demand for our theatrical portfolio.” us in the fourth quarter of 2022 and the calendar year 2023.”
includes Marvel’s “Black Panther: Wakanda Forever” in November and DC’s “Shazam! Fury of the Gods”, James Cameron’s “Avatar: The Way of Water” and “Puss in Boots: The Last Wish” ” by Dreamworks AMC ended the second quarter with over $1 billion in cash
“Our new AMC Preferred Equity, will begin trading on the New York Stock Exchange on Monday, Aug. 22 2022, will also make us a much stronger company.”
AMC reported revenue of $1.17 billion in the second quarter, compared with $ .7 million in the previous quarter. Net loss narrowed from $3 3.6 million to $121.6 million.
Global arrivals were 59 million customers, compared to 22 million in Q2 2021.