Investors should note that on the ex-dividend date (August 22, 2022) the price of AMC Common Stock is likely to decline to reflect the fact that the shares purchased on or after such date will no longer be entitled to the dividend.
$AMC share price will adjust to 50% of what it was close of business Aug 15 2022. This was explained as a 2 for 1 split, taking 50% of $AMC and issuing the same value in $APE
The record date for the AMC Preferred Equity Unit dividend is the close of business on August 15, 2022. However, the AMC Preferred Equity Unit dividend is expected to be paid as of the close of business on August 19, 2022.
Need to find out if you have to buy before 15th or settle before 15th
If the Common Stock Amendment is adopted by shareholders, each AMC Preferred Equity Unit will convert into one share of Common Stock and such Common Stock will be distributed upon conversion to holders of AMC Preferred Equity Units on a one-to-one basis (one share of Common Stock for each AMC Preferred Equity Unit held).
Up for vote is the conversion of 1 APE into 1 AMC share. See note above regarding the conversion of 1 CLASS A share into 100 APE
Each AMC Preferred Equity Unit is a depositary share and represents an interest in one one-hundredth (1/100th) of a share of the Company’s Series A Convertible Participating Preferred Stock (the “Preferred Stock”). Each share of Preferred Stock in turn is potentially convertible into one hundred (100) shares of Common Stock.
Represent interest in 1 out of 100 shares of class A convertible stock. Each share of preferred stock can turn into 100 shares of Common stock.
1 $Ape is not the equal to 1 class A Convertible stock, 1 Ape is derived from 1% of 1 class A convertible stock. Important
765,000 current AMC Investor Connect members,
currency
1 $APE = 1 $APE? What is Currency? (https://investopedia.com/terms/c/currency.asp)
or raising fresh equity
Why Corporations Supply Preference Shares Companies that offer preferred shares instead of issuing bonds can accomplish a lower debt-to-equity ratio. That allows them to gain significantly more future financing from new investors. A company's debt-to-equity ratio is one of the most common metrics used to analyze the financial stability of a business. The lower this number is, the more attractive the company looks to investors. Additionally, bond issues can be a red flag for potential buyers. The strict schedule of repayments for debt obligations must be maintained, regardless of the company's financial circumstances. Preferred stocks do not follow the same guidelines of debt repayment because they are equity issues. Investopedia
Preferrred shares can act as poison pills in the event of Hostile Take over
by paying down debt
AA is on a warpath on debt. "The company ended the second quarter with about $5.4 billion in corporate borrowings, in part reflecting debt incurred to weather the COVID-19 pandemic. AMC also had roughly $4.4 billion in lease obligations for its theaters, which investors also view as a form of debt." Source Website: yahoo finance article
“The issuance only to our shareholders of tradable AMC Preferred Equity units clarifies who is included in our current shareholder base, and provides another avenue for our investors to participate in the ongoing recovery and growth of AMC.”
AA states that these unites clear up who is included in their current shareholder base, suggesting that there will be those who ARE NOT included.
, but only if the Company proposes and investors vote to approve an increase in the number of authorized shares of Common Stock, in an amount at least sufficient to permit the conversion of the AMC Preferred Equity Units into Common Stock (through a “Common Stock Amendment”).
APE common shares can be converted to common shares of AMC, but for that to happen: 1. AMC board of Directors would have to propose it 2. AMC share holders would have to be willing to approve as many $AMC shares to be authorized (not necessarily sold to market) as it would take to fulfill the conversion of APE to AMC (Example: if we authorize conversion of 1 Ape to 5 AMC shares then the AMC share holder would have to approve the issuing of that many $AMC shares to be issued by AMC the company.
an “AMC Preferred Equity Unit”)
$APE on NYSE goes live Aug 22 2022
AMC news room post--