Equity

Raise

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.</div>



<p class="has-drop-cap">A <a aria-label="court filing (opens in a new tab)" href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0001411579/5382e257-eb1f-4476-9afc-9680d1981c06.pdf" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">court filing</a> on Monday showed that AMC has agreed to settle a lawsuit relating to converting its preferred shares into common stock, which fell over 21% at Tuesday&#8217;s market open. </p>



<h3 id="ape-up-11-on-the-settlement-news">APE Up 11% on the Settlement News</h3>



<p>Shares of AMC Entertainment plunged more than 21% in premarket trading Tuesday after the cinema chain agreed to settlement terms related to shareholder litigation around the conversion of its AMC Preferred Equity (APE) into <a href="https://tokenist.com/investing/how-to-buy-amc-stock/" rel="dofollow" class="deco-link">common stock</a>. APE shares surged more than 11% on the reports.</p>



<p>The settlement, disclosed in a filing on Monday, would clear the way for AMC’s proposal to convert preferred APE shares into regular stock, along with a 10-to-1 <a aria-label="reverse stock split (opens in a new tab)" href="https://www.investor.gov/introduction-investing/investing-basics/glossary/reverse-stock-splits#:~:text=For%20example%2C%20if%20a%20company,after%20the%20reverse%20stock%20split." target="_blank" rel="noreferrer noopener nofollow" class="deco-link">reverse stock split</a> and the ability to offload more shares. AMC shareholders supported the proposal last month, but the plan was put on hold after some shareholders filed a lawsuit against the company in Delaware Chancery Court to block the move.</p>



<p>As part of the settlement, the cinema theater chain will pay common shareholders one share for every 7.5 shares they hold following the reverse stock split.</p>



<p>AMC’s APE shares were issued in 2022 as a workaround to help the company eliminate debt after it faced backlash on proposals to create more shares. The name of the new shares, APE, came as an homage to retail investors known as “apes,” who played a key role in <a href="https://tokenist.com/more-than-50-of-stocks-bought-during-the-meme-stock-frenzy-have-been-sold/" rel="dofollow" class="deco-link">rescuing the company</a> from bankruptcy during the coronavirus pandemic.</p>


<div class="cta-referral">

			<img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async">
	
	<div class="cta-referral__text">
		<p>Join our <a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow">Telegram group</a> and never miss a breaking digital asset story.</p>

	</div>

</div>


<h3 id="amc-could-raise-16b-in-fresh-capital-says-b-riley-analyst">AMC Could Raise $16B in Fresh Capital, Says B. Riley Analyst</h3>



<p>Eric Wold, an analyst at B. Riley Securities, said the APE-conversion settlement could help AMC <a href="https://www.marketwatch.com/story/amcs-ape-conversion-settlement-could-lead-to-potentially-massive-16-billion-equity-raise-says-analyst-4116c059" target="_blank" aria-label="secure significant equity funding (opens in a new tab)" rel="noreferrer noopener nofollow" class="deco-link">secure significant equity funding</a> of as much as $16 billion. According to Wold, the settlement smooths the path for a “potentially massive” fundraise.</p>



<blockquote class="wp-block-quote">
<p>“Should the conversion of APE units to AMC common shares be permitted to proceed — along with the increase in authorized common shares and 1-for-10 reverse stock split — we continue to see a positive path for the company to raise significant amounts of capital.&#8221;</p>
<cite>&#8211; Eric Wold, an analyst at B. Riley Securities said. </cite></blockquote>



<p><a href="https://tokenist.com/ape-surges-45-as-amc-announces-debt-exchange-reverse-stock-split/" rel="dofollow" class="deco-link">AMC raised $110 million</a> in equity capital in December from selling its APE shares to private investment firm Antara Capital, one of its biggest debt holders. AMC common shares traded at $3.96 at the time of the writing, while APE shares stood at $1.60.</p>


<div class="cta-sub js__cta-sub">

	<div class="cta-sub__start" data-step="1">

					<div class="cta-sub__title"><strong>Finance is changing.</strong></div>
							<div class="cta-sub__subtitle">Learn how, with Five Minute Finance.</div>
							<div class="cta-sub__excerpt">A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.</div>
							<button type="button" class="btn">Try it out (for free)</button>
			</div>

	<div class="cta-sub__form" data-step="2" style="display: none;">
									<script type="text/javascript"
						src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&#038;webforms_id=zw3Wv"></script>
						</div>

	<div class="cta-sub__result" data-step="3" style="display: none;">
		<div class="cta-sub__title">Awesome</div>
		<div class="cta-sub__caption">You&#8217;ve subscribed.</div>
		<div class="cta-sub__greeting">You&#8217;re well on your way to being in the know.</div>
	</div>

</div>



<p><em><strong>Do you think AMC made the right move by agreeing to settle the lawsuit? Let us know in the comments below.</strong></em></p>
<p>The post <a rel="nofollow" href="https://tokenist.com/amc-down-21-premarket-as-ape-conversion-lawsuit-settled/">AMC Down 21% Premarket as APE-Conversion Lawsuit Settled</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

AMC Down 21% Premarket as APE-Conversion Lawsuit Settled

Table of Contents

TokenInsight

Άλλα άρθρα που δημοσιεύτηκαν στις 4 Απρ 2023

Tether Used Signature’s Signet and a Bahaman Bank for Dollar Transactions

PUBLISH partners with Mongolian journalism organizations to develop blockchain-based news ecosystem

Coinweb has Closed $2 Million Fundraising Round from SAVA Investment Management

PUBLISH opens new ESG center, says "ESG is no longer an option"

ANIPANG Match, VS Royale Mode Airdrop Event

Double the rewards, double the fun with PUBLISH this December!

Join our free newsletter for daily crypto updates!