APE stock

AMC Entertainment Holdings Inc. shares undefined tumbled 33% premarket Monday, ahead of the start of trading for its AMC Preferred Equity Units undefined, ...

"While the level of liquidity generated by this new class of equity, and the speed at which that materializes, is unclear at this point, we would be surprised if the two classes of equity (the APEs and common shares) did not trade at relatively equal prices after the initial dust settles-given the equal economic value and voting rights." "While we understand there was a notable level of initial confusion around the mechanics of the APEs and the potential need for a shareholder vote to unlock their value (to either shareholders or AMC), we continue to view this as a clever way for management to take advantage of the enthusiastic retail interest in the common equity over the past 18 month," B. [AMC,-38.32%](/investing/stock/AMC?mod=MW_story_quote)tumbled 33% premarket Monday, ahead of the start of trading for its AMC Preferred Equity Units [APE,+1.17%](/investing/stock/APE?mod=MW_story_quote), or Apes, which were declared by the company as a special dividend to class A common shareholders earlier in August.

AMC Entertainment's stock price has taken a nearly 40% dive in early trading on Monday as the theater chain prepared to launch new “preferred equity” shares ...

While August is historically a slower period for the box office, the financial strain caused by the year-long pandemic closure and another year of slow, steady recovery has compounded the effect of the recent downturn on movie theaters. “With the creation of APEs, AMC is deeply and fundamentally strengthening our company. The biggest damage has been done to Cineworld, which has 751 theaters worldwide with 9,159 screens. And the compny’s overall financial forecast remains cloudy. Investors seem to be joining them in that opinion on Monday, raising doubts about Aron’s stated goal of raising more equity through the creation of the new APE stock. AMC’s fortune has been buoyed somewhat by its status as a meme stock.

AMC shares fell 33% in pre-market trading ahead of its new class of shares debuting on the NYSE. Here's what could be driving the fall…

2 theater chain in the world—but AMC is No. It’s likely the debut of APE today isn’t the main thing dragging down AMC stock. - Why is AMC issuing APE shares? - If APE is good for AMC, why is AMC stock down 33%? [explainer on AMC’s APE shares here](https://www.fastcompany.com/90776281/amc-stock-price-shares-crash-as-company-announces-new-preferred-ape-stock), but in short, they are a new class of stock created by AMC. However, in pre-market trading this morning, AMC shares are down a staggering 33% as of the time of this writing.

The stock was expected to dip ahead the new issue but it's still a messy market for exhibition and meme stocks.

By sending the stock flying during Covid at a crucial time, they allowed AMC to raise cash by selling shares at the inflated prices and helping it to stay financially solvent. APES are good for the company in that AMC now has a new currency it can uses to 1) strengthen its balance sheet, including reducing debt and other liabilities, and 2) invest in “shareholder value-enhancing and transformative M&A investment opportunities.” Aron has hinted that could include theaters eventually shed by Regal. AMC became a meme poster boy in early 2021 when opinionated, vocal retail investors poured into the stock to help it rise and crush short sellers, who bet the shares would fall. expect that the price of a stand-alone share of common stock logically should at least initially decline, however that investor’s economic interest will be the sum of the price of a share of common stock plus the price of an APE,” AMC said. Furthermore, we see an attractive setup for the exhibitors heading into the stronger film slates of 4Q22 and 2023 given the positive attendance and per patron spending dynamics over the past 6-12 months,” said Eric Wold of B. Remember that with the APE already having had its first NYSE trade today, the value now of your AMC holdings consists of the prices of your AMC shares and your new APE units COMBINED. [Cineworld](https://deadline.com/tag/cineworld/), confirmed it may file for Chapter 11 in the U.S. Cineworld has about $9 billion in debt, a big chunk of that acquired when it bought Regal in 2018 for $3.6 billion. Add together an AMC share plus a new APE unit, compared to just an AMC share before. But analysts who follow the sector view Cineworld’s balance sheet concerns as a company-specific issue. (Apes are also slang for amateur investors, who piled into AMC in 2021.) A report said the security was halted briefly after trading up to $9.49.

AMC Entertainment Holdings' shares tumbled nearly 30% on Monday after UK-based Cineworld's warning of a possible bankruptcy spooked investors on the same ...

The COVID-19 lockdowns severely impacted the business of cinema operators. AMC's preferred stock, trading under the ticker "APE", opened at $6.95 on the New York Stock Exchange on Monday. Register now for FREE unlimited access to Reuters.com

AMC's common stock fell sharply on Monday as a rival warned of potential bankruptcy and a new preferred share class hit the market.

The new share class resembles a stock split in some ways, and the combined value of one AMC share and one APE unit on Monday was trading roughly equal to Friday's AMC closing price. An AMC share plus a new APE unit added together — compared to just an AMC share previously," Aron wrote on Both names have become meme stocks, with a large percentage of retail investors and social media followings. The drop comes as rival Cineworld said on Monday it is considering filing bankruptcy. "It's effectively a two-for-one stock split and I would expect that once it becomes effective, that the price per share should drop by about 50%. The new preferred shares from AMC could also be impacting trading.

"This new AMC Preferred Equity gives AMC a currency that can be used in the future to strengthen our balance sheet," AMC said earlier this month.

Much of Monday's decline could be attributed to the price adjustment that occurs when a dividend is issued, depending on what price AMC's "APE" trades for. An AMC share plus a new APE unit added together — compared to just an AMC share previously," Aron "This new AMC Preferred Equity gives AMC a currency that can be used in the future to strengthen our balance sheet, including by paying down debt or raising fresh equity. GameStop and Bed Bath & Beyond fell 6% and 12% in Monday morning trades, respectively. But AMC's big stock price decline on Monday could also partially be attributed to news that one of its biggest competitors is considering Chapter 11 bankruptcy. - AMC Entertainment plunged 40% on Monday ahead of the company's issuance of "APE" preferred stock.

AMC Entertainment is officially going "APE" in an effort to further solidify its financial future as its primary rival Cineworld says it's exploring a ...

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AMC Entertainment's AMC Preferred Equity Units, or APEs, are creating something like a stock split and sending the cinema stock lower.

“In any case, we don’t think Cineworld’s issues indicate the same for AMC or Cinemark, as the latter companies are better positioned with more cash available.” The APE special dividend should also make AMC a stronger company, he added. “In the absence of any other noise, AMC shares should be down around 50% (to $9) with APE shares rising to $9, given Friday’s AMC closing of $18.01,” she told MarketWatch. The idea that Cineworld’s bankruptcy is detrimental for AMC is way off the mark, according to Wedbush’s Reese. “However, given that the special dividend is similar to a 2-for-1 stock split, it makes sense to see AMC shares pressured with this issuance.” [The Wall Street Journal](https://www.wsj.com/articles/regal-cinemas-owner-cineworld-prepares-for-bankruptcy-filing-11660910944?page=1&mod=article_inline&mod=article_inline&mod=article_inline) that U.K. “We keep seeing articles that Cineworld’s bankruptcy is a negative for AMC and the industry, but I fail to see how that’s the case,” she told MarketWatch. cinema chain Cineworld Group PLC [CNWGY, -32.11%](/investing/stock/CNWGY?mod=MW_story_quote) [CINE,](/investing/stock/CINE?countryCode=UK&mod=MW_story_quote), the parent of Regal Entertainment Group, was -21.36% [preparing to file for bankruptcy](https://www.marketwatch.com/story/movie-theater-operator-stocks-fall-after-wsj-report-that-uks-cineworld-is-preparing-for-bankruptcy-2022-08-19?&mod=article_inline&mod=article_inline&mod=article_inline). “They both have the same economic value,” he said. “However, there is likely to be some short-term impact from index funds readjusting for this issuance as the APEs are not included in the indices, but the common shares are included.” “I suspect that will be the case with the APE shares going forward,” he added. AMC shares, which have fallen 59.3% this year, have declined 4.3% over the last three months.

The AMC Preferred Equity units were announced earlier this month as a special dividend to class A common stockholders.

(ticker: AMC) announced in early August. “APE” special preferred share dividends began trading Monday on the New York Stock Exchange. ](https://www.barrons.com/market-data/stocks/amc)

Believe it or not, investors in AMC have made money today. AMC Entertainment (AMC -70.98%) issued shares of AMC Preferred Equity, or APE, on Monday ...

22, 2022. This video gets into what investors need to know. [AMC](/quote/nyse/amc/) -70.98%) issued shares of AMC Preferred Equity, or APE, on Monday morning and sent shares down over 40%.

On Friday, as a thank you/means of raising funds, AMC issued one preferred equity stock unit for each of its 560.82 million outstanding shares of common stock.

Those good guys are the “apes” — they also refer to themselves as “degenerates.” Aron’s talk of “prophets of doom” is a shot against institutional Wall Street investors who bet against AMC’s (and GameStop’s) success, often through the process of short-selling. “As for AMC’s liquidity, AMC ended the second quarter of 2022 with more than $1 billion of liquidity, thanks to significant amounts of cash raised in calendar years 2020 and 2021,” he added. However, we continue to be quite optimistic about the increasing demand for our portfolio of movie theatres in the fourth quarter of 2022 and calendar year 2023.” (Regal confirmed the report today.) AMC is the largest movie-theater chain in the America; Regal is number two. The move gave AMC an alternative to the less-palatable option of issuing more shares of its common stock; the company will be able to sell some of the new units to raise funds. The acronym doubles as a nod to an inside joke among the Reddit users who bought up [AMC stock](https://www.indiewire.com/t/amc-stock/) during the troubled times of the early pandemic, possibly saving the theater chain from going under.

Wedbush lowered its AMC price target to reflect more shares after it issued APE, its preferred equity stock.

"We note that at the August 22 closing price of $6, AMC would have to issue over 900 million shares of APE to repay its entire debt balance," Reese wrote. Reese also noted that the Cineworld bankruptcy should not impact AMC as it doesn't relate to negative industry dynamics. "While it makes little sense for APE to trade below AMC, we think that it reflects concerns over impending dilution," Alicia Reese wrote in a Tuesday note. On the first day of APE trading, combined shares lost $800 million in enterprise value from Friday's closing price of $18.01, according to the note. AMC closed at $10.46 while APE ended the day at $6. "AMC is pre-authorized to issue up to 4.5 billion additional preferred shares of APE to raise cash."