{"id":291978,"date":"2021-07-06T17:50:30","date_gmt":"2021-07-06T14:50:30","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/amc-says-plan-to-issue-more-shares-has-been-tabled\/"},"modified":"2021-07-06T17:50:30","modified_gmt":"2021-07-06T14:50:30","slug":"amc-says-plan-to-issue-more-shares-has-been-tabled","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/amc-says-plan-to-issue-more-shares-has-been-tabled\/","title":{"rendered":"#AMC says plan to issue more shares has been ‘tabled’"},"content":{"rendered":"

“#AMC says plan to issue more shares has been ‘tabled’<\/strong>”<\/p>\n

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AMC said Tuesday that it will scrap a controversial proposal to issue up to 25 million new shares of its surging stock, citing a mixed response to the idea from investors.<\/p>\n

The world\u2019s largest movie-theater chain \u2014 which has been a key beneficiary of this year\u2019s \u201cmeme stock\u201d frenzy \u2014 said in a securities filing that the plan has been withdrawn from its annual meeting set for July 29 and that it wouldn\u2019t propose another share sale until next year at the earliest.<\/p>\n

The news<\/a> sent shares of AMC up nearly 6 percent in early Tuesday trades. The stock was recently up 0.6 percent at $52.31.<\/p>\n

AMC chief executive Adam Aron also tweeted <\/a>out the announcement on Tuesday, saying: \u201cIt\u2019s no secret I think shareholders should authorize 25 million more AMC shares. But what YOU think is important to us. Many yes, many no. AMC does not want to proceed with such a split.\u201d<\/p>\n

AMC had been seeking shareholder app<\/a>roval to sell 25 million shares at some point next year in order to fund potential value-creating investment opportunities, as the company put it. But Aaron emphasized that the plan would be \u201ctabled.\u201d<\/p>\n

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Of course, voting on the other 4 issues requiring approval at the July 29 annual AMC shareholder meeting will continue on schedule. But proposal 1 is hereby officially tabled. There will be no voting before 2022 on more shares. 2 of 2 pic.twitter.com\/1fBya4sjJc<\/a><\/p>\n

\u2014 Adam Aron (@CEOAdam) July 6, 2021<\/a><\/p><\/blockquote>\n<\/div>\n<\/div>\n<\/figure>\n

Like Game<\/a>Stop, AMC\u2019s stock has been a favorite of traders using platforms like Reddit<\/a> to boost their stock picks. Wild gains in its stock price, which to date has risen more than 2,350 percent this year, helped AMC stave off bankruptcy as the coronavirus pandemic all but destroyed its business.<\/p>\n

AMC board members have cashed in on the stock jolt. Last month, three members of AMC\u2019s board of directors each sold off shares worth more than $800,000, while two more members sold shares worth more than $700,000 per director.<\/p>\n

\"People
AMC\u2019s stock has benefitted from a meme-stock trading frenzy this year. <\/figcaption>
Noam Galai\/Getty Images<\/span><\/figcaption><\/figure>\n

Around the same time, AMC had a flurry of announcements of new stock issuances, and warned investors of market volatility and the high \u201crisk\u201d of losing their money if they bought the stock.\n <\/p><\/div>\n