AMC APE Preferred Stock: Everything You Need to Know

It is not intended to constitute investment advice or any other kind of professional advice and should not be relied upon as such. Before taking action based on any such information, we encourage you to consult with the appropriate professionals. We do not endorse any third parties referenced within the article. Market and economic views are subject to change without notice and may be untimely when presented here. Do not infer or assume that any securities, sectors or markets described in this article were or will be profitable. Historical or hypothetical performance results are presented for illustrative purposes only.

All holders of AMC stock as of the August 19th record date received one share of APE, with the first trade of AMC and APE on Monday August 22nd. While AMC pulled in nearly $1.2 billion in revenue during the quarter ended June 30, the company posted a net loss of $121.6 million, according to its second-quarter results Thursday. You must be a shareholder on or before the next ex-dividend date to receive the upcoming dividend. Securities and Exchange Commission (the “SEC”), copies of which may be obtained by visiting our Investor Relations website at investor.amctheatres.com or the SEC’s website at Will it squeeze much higher on its first trading day on August 22nd, 2022? I have no idea but will definitely hold my APE shares through the dividend record date to see what happens.

• Information for this briefing was found via Edgar and the companies mentioned.
• Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved.
• T-bills are subject to price change and availability – yield is subject to change.
• The company expects to pay a dividend of about 517 million APE units later this month.
• Those “apes” may have saved the largest exhibitor chain in the U.S.

Now AMC is hoping to tap them again to create more shares of the company. Following Thursday’s news that the world’s No. 1 exhibitor was awarding APE investors with one AMC preferred Equity share for each AMC Class A common stock, AMC’s stock price jumped 31% on Friday from $16.97 to $22.18. Well, this morning they jumped again 14%, opening at $24.06 and hitting a high of $27.50. At the time of this post’s publication, AMC shares were trading at $25.02. AMC Entertainment Holdings Inc.’s stock fell more than 10% in extended trading on Thursday after the company announced a special dividend in the form of “Ape” preferred shares. «It wouldn’t surprise me at all if the APE shares sell at a premium over the AMC common shares … [because] in the event of bankruptcy, the preferred shareholders would have priority over the common shareholders,» Ritter said.

Who qualifies for AMC’s “APE” special dividend?

«With the creation of APEs, AMC is deeply and fundamentally strengthening our company,» Aron said in a separate shareholder letter issued Thursday. «Given the flexibility that APEs will give us, we likely will be able to raise money if we need or so choose, which immensely lessens any survival risk as we continue to work our way through this pandemic to recovery and transformation.» Those “apes” may have saved the largest exhibitor chain in the U.S. These APEs are essentially a freebie, though Aron said not to be surprised if the price of AMC common shares drop in response to the launch of APEs. AMC shares dropped about 10 percent in after-hours trading Thursday; the price was $18.66 at the close of trading.

• This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Open to the Public Investing is not registered.
• Always do additional research and consult a professional before purchasing a security.
• The company’s prior attempts to issue new common shares had not been well-received by investors.
• AMC issued a special preferred shares dividend to shareholders called APE and this article will explain everything you need to know.

These preferred equity units are a workaround, of sorts, and free AMC up to sell additional units of stock as it continues to revive its business after the pandemic. After offering the 517 million APE units, AMC will still have around 4.5 billion units remaining that it could sell to raise funds. AMC Theatres CEO Adam Aron isn’t moving away from his very online persona. The executive on Thursday announced AMC will issue dividends in the form of preferred equity stock units. The company expects to issue a dividend of around 517 million APE units later this month.

Plans are created using defined, objective criteria based on generally accepted investment theory; they are not based on your needs or risk profile. You are responsible for establishing and maintaining allocations among assets within your Plan. Plans involve continuous investments, regardless of market conditions. See our Investment Plans Terms and Conditions and Sponsored Content and Conflicts of Interest Disclosure. The above content provided and paid for by Public and is for general informational purposes only.

AMC does not intend, and undertakes no duty, to update any information contained herein to reflect future events or circumstances, except as required by applicable law. Check this page frequently because I will update it once I receive more info on the APE dividend. For example, if AMC stock trades at $20 then APE will be worth 50% of AMC’s value, which is $10. In the second quarter, AMC had attendance of 59 million people at its theaters globally, up 168% from the 22 million attendees in the same quarter a year ago, according to Aron.

Ratings – APE

The chip maker’s stock has almost tripled in value this year but has moved sideways in recent months. Citi analysts say the shares could receive a new push in the first half of 2024. AMC also reported its second-quarter results after market close, reporting a narrowing loss that beat expectations and revenue in line with analysts’ forecasts. The APE special dividend could help AMC cut its massive debt burden, according to analysts.

What Is AMC’s Stock Forecast?

Apex Clearing Corporation, our clearing firm, has additional insurance coverage in excess of the regular SIPC limits. This aspect of the dividend, by all accounts, is where the confusion and conspiracy theories come in. In simple terms, if you hold AMC shares as of the close on August 15, and hold those shares until the ex-dividend date, you will receive one APE share zig zag indicator for each AMC share you hold. Shareholders should expect to receive their APE shares after markets close on Friday, August 19, with the company to begin trading on an ex-dividend basis August 22. AMC Entertainment appears to have found a creative solution to boost its share count and raise funds after investors balked at a proposal to issue more shares last year.

Will I get APE stock for my AMC holdings?

AMC Entertainment appears to have found a creative solution to increase its share count and raise funds after investors abandoned proposals to issue more shares last year. And while loss per share benefited from improved operations, it was also impacted by marking to market the «volatile» share price of the company’s gold mining investment, in Hycroft Mining. Welcome to The Deep Dive, where we focus on providing investors of Canadian junior stock markets the knowledge they need to make smart investment decisions. We take a closer look at all data relating to organizations listed on the CSE and the TSX Venture to create quality stock analysis for investors. Despite this, Aron has attempted to claim that this will result in “NO DILUTION from this initial issuance.” Which may be correct on a technical level, because current shareholders will simply receive another share in the company. Trading AMC stock is less about fundamentals and more about sentiment.

The document also said that some brokerages may take «several days» to transfer the APE units into individual accounts. The new APE units trade under the ticker «APE,» while the AMC common shares will continue to trade under «AMC.» Unofficially, the distribution of APE shares in 2022 was effectively trading stocks australia a 2-for-1 stock split. As noted, the company gave away one APE share for every one AMC share owned. While the two stocks had different tickers, they represented ownership in the same company. The stock dividend ultimately doubled AMC’s share count, just as a 2-for-1 stock split would.

Tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations.

Best E-Commerce Stocks to Buy Now

The special dividend of one APE unit per share of common stock should be paid at the close of business Aug. 19, with a record date of Aug. 15. That is, of course, until the idea of a preferred unit that is effectively equal to (and at some point in the future likely convertible into) a common share came along. “With the creation of APEs, AMC is deeply and fundamentally strengthening our company.

Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored filling the gap stocks to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. Tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.