Adam Aron, the CEO of AMC Theatres, has announced that the company will offer dividends in the form of preferred equity stock units on the New York Stock Exchange, as a nod to a popular Reddit user's eagerly snatched up AMC stock during the early epidemic.
Aron said today is the day to pounce. It is now time for us to take decisive and even valorous action. Look up the word valorous in the dictionary.'
If you are confused by the slang, the securities terms, or Arons performative performance, please beware. Here's what Aron has announced Thursday.
AMC will begin trading three days later and will have the same voting rights as the existing common stock on August 19. The move gives AMC an alternative to issuing more real shares; the company will be able to sell some of the new units to raise funds.
This is a significant step forward for AMC. It's, in my opinion, the greatest positive development for our company in the whole calendar year 22, both in terms of looking back and looking ahead, according to Aron. This is great news for AMC, but not so good news for those who may be stoked by the storm.
Aron claims that 90 percent of AMC shares are owned by retail investors, some, but certainly not all, of whom made purchases during the epidemic, as part of the meme stock scene on Reddit.
AMC is a joke for members of the Reddits r/WallStreetBets community. Among the most famous ones was the one who sparked a firestorm around GameStop last year; they managed to raise stock prices of the shop and short-selling hedge funds.
So Arons' reference to prophets of doom is a shot against those Wall Street fat cats that are betting against AMCs success as part of his strategy of wooing underdog-rooting meme-stock investors. Members of the community also refer to themselves as degenerates.
The largest exhibitor chain in the United States may have been saved by those apes, though Aron said not to be surprised if the price of AMC common shares falls as a result of the launch of APEs. AMC shares fell about 10 percent in after-hours trading Thursday; the price was $18.66 at the close of trading.
All of this is part of Aron's club-like brand for AMC and its investors. The company has previously launched exclusive incentives for investors such as free concessions and NFTs, while Aron is active on Twitter engaging with the dedicated community of retail shareholders.
3. These 516,820,595 new AMC Preferred Equity units will be listed on the New York Stock Exchange with the symbol APE. Yes, you heard that right. Amc Preferred Equity is a brand new type of common stock stock split, but it's still quite similar.
Adam Aron (@CEOAdam) August 4, 2022
AMC reported net sales of $1.16 billion last quarter, compared to $444.7 million in Q2 2021. Losses decreased from $344 million in Q2 2021 to $121.6 million in Q2 2022, boosted by the performance of Top Gun: Maverick.