{"id":530597,"date":"2022-12-22T19:04:18","date_gmt":"2022-12-22T16:04:18","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/amc-entertainment-shares-tank-after-unveiling-110m-plan\/"},"modified":"2022-12-22T19:04:18","modified_gmt":"2022-12-22T16:04:18","slug":"amc-entertainment-shares-tank-after-unveiling-110m-plan","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/amc-entertainment-shares-tank-after-unveiling-110m-plan\/","title":{"rendered":"#AMC\u00a0Entertainment shares tank after unveiling $110M plan"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a409b024624d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a409b024624d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/amc-entertainment-shares-tank-after-unveiling-110m-plan\/#%E2%80%9CAMC_Entertainment_shares_tank_after_unveiling_110M_plan%E2%80%9D\" >&#8220;AMC\u00a0Entertainment shares tank after unveiling $110M plan&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CAMC_Entertainment_shares_tank_after_unveiling_110M_plan%E2%80%9D\"><\/span>&#8220;AMC\u00a0Entertainment shares tank after unveiling $110M plan&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>Meme-stock darling AMC Entertainment saw its share price nosedive Thursday after the world\u2019s largest movie theater chain announced plans to raise $110 million in new capital and proposed a reverse stock split.<\/p>\n<p>AMC shares plunged nearly 15% in midmorning trading as the stock hit a new 52-week low of $4.11. It closed at $4.91, down 7.4%.<\/p>\n<p>The precipitous drop came after the company said it plans to raise new equity through a sale of APE units \u2013 a form of preferred shares referring to the \u201cApes\u201d moniker adopted by meme-stock investors \u2013 to Antara Capital at a weighted average price of 66 cents a share.<\/p>\n<p>Antara, a current AMC debt holder, will also exchange $100 million in debt for about 91 million APE units, which would reduce AMC\u2019s annual interest expense by about $10 million.<\/p>\n<p>AMC CEO Adam Aron also announced the company is looking to hold a meeting of APE and AMC shareholders to vote on converting APE Units into AMC shares, proposing a reverse-split at a 1:10 ratio.<\/p>\n<p>\u201cGiven the consistent trading discount that we are routinely seeing in the price of APE units compared to AMC common shares, we believe it is in the best interests of our shareholders for us to simplify our capital structure,\u201d Aron said.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/adam-aron-amc.jpg?w=1024\" alt=\"CEO Adam Aron\" class=\"wp-image-25101304\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/adam-aron-amc.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/adam-aron-amc.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/adam-aron-amc.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>CEO Adam Aron the plan to raise $110M \u201cis in the best interests of our shareholders for us to simplify our capital structure.\u201d<\/figcaption><figcaption><span class=\"credit\">REUTERS<\/span><\/figcaption><\/figure>\n<p>The movie theater giant has been working to lighten its heavy debt load, which grew during the early days of the pandemic after its doors were shuttered. It is also dealing with stock dilution and a film release schedule that is short on blockbusters.\u00a0<\/p>\n<p>Last month, AMC reported a quarterly loss of $226.9 million even as it recorded higher revenue compared to the year-ago period, which was burdened by higher operational costs.<\/p>\n<p>During the third quarter, it said it burned through $179 million in cash as it focused on upgrading movie screens and adding more Imax and Dolby Cinema screens across its portfolio.<\/p>\n<p>AMC\u2019s capital raise and reverse stock split proposal comes a day after it said it is no longer in talks to buy theaters from rival Cineworld, which owns the Regal chain. Cineworld filed for bankruptcy earlier this year.\u00a0<\/p>\n<p>AMC, too, had been on the verge of bankruptcy in 2021, but was able to avert disaster after millions of retail investors turned it into a so-called \u201cmeme stock\u201d \u2014 with the stock soaring to nearly $60 last year.  <\/p>\n<p>Aron has since cooked up several plans to raise more capital and reduce its debt as it invested more in improving its theaters.\u00a0<\/p>\n<p>In August, AMC announced APE as a special dividend for shareholders and a means to raise capital in the future.\u00a0<\/p>\n<p>\u201cThey\u2019ve taken on a lot of debt and it\u2019s the only way to survive,\u201d Thomas Hayes, chairman and managing member of Great Hill Capital told Reuters. \u201cThey\u2019re going to have to continue to raise capital to service all this debt to survive and it doesn\u2019t look that promising.\u201d<\/p>\n<p>Aron said AMC had cleared about $180 million of debt in 2022.<\/p>\n<p>At the end of September, AMC\u2019s liabilities totalled $11.79 billion, which included corporate borrowing of $5.2 billion. Cash and cash equivalents were at $684.6 million, a fall from $1.59 billion a year ago.<\/p>\n<p>The Leawood, Kans.-headquartered firm, which operates over 900 theaters globally, has a market capitalization of $2.74 billion.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/12\/22\/amc-entertainment-to-raise-110m-proposes-reverse-stock-split\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;AMC\u00a0Entertainment shares tank after unveiling $110M plan&#8221; Meme-stock darling AMC Entertainment saw its share price nosedive Thursday after the world\u2019s largest movie theater chain announced plans to raise $110 million in new capital and proposed a reverse stock split. AMC shares plunged nearly 15% in midmorning trading as the stock hit a new 52-week low&#8230;<\/p>\n","protected":false},"author":1,"featured_media":530598,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/12\/amc-entertainment-shares.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[137611,73689,4979,88271,70359],"class_list":["post-530597","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-12-22-22","tag-amc-entertainment","tag-movie-theaters","tag-shareholders","tag-stocks"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/530597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=530597"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/530597\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/530598"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=530597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=530597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=530597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}