AMC stock

AMC Entertainment (AMC) will host its first-quarter earnings call on May 5. Loyal investors in the meme stock may be excited as this date draws near. The ...

AMC settled its lawsuit over APE units, but significant dilution will be needed after the reverse split to improve the balance sheet.

The company settled the lawsuit regarding the conversion of its APE units, which paves the way for the company to reverse split its stock and then start diluting its investors quite significantly. The settlement payment will consist of one share of Class A common stock for every 7.5 shares of Class A common stock owned by such record holders as of the Settlement Class Time (after giving effect to the Reverse Stock Split). [average price target](https://seekingalpha.com/symbol/AMC/ratings/sell-side-ratings) on the street being just $2.26. AMC's actual cash balance was down almost a billion dollars in the past year, which is troubling as the business and revenues recover because it means you'll need more of a minimum cash balance just for day to day operations. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. While AMC has been able to reduce its debt pile a little recently, the amount of working capital is at its most negative point in two years. Once the reverse split goes through, the company will likely start selling AMC shares again, with the ability to more than triple the share count if need be. Investors should also consider seeking advice from a broker or financial adviser before making any investment decisions. [AMC](https://seekingalpha.com/symbol/AMC)). The lawsuit aimed to prevent this conversion from going through, and the key details from the company's As a reminder, AMC is almost up against its outstanding share limit, meaning it can't sell too many more shares to raise capital. The movie theater chain is seeing its shares plunge after the company announced that it [had settled a lawsuit](https://seekingalpha.com/news/3953967-amc-slides-apes-rise-on-filed-settlement-of-stock-conversion-lawsuit) regarding the conversion of its AMC Preferred Equity Units ( [APE](https://seekingalpha.com/symbol/APE)).

AMC Entertainment Holdings has settled a shareholder lawsuit over its plans to convert the move theater chain's "APE" preferred equity units into shares of ...

[AMC'S WALMART-EXCLUSIVE AT-HOME POPCORN DEAL DIVERSIFIES FROM THEATERS](https://www.foxbusiness.com/markets/amc-walmart-exclusive-home-popcorn-deal-diversifies-theaters) AMC said that, as part of the settlement, it has agreed to pay the plaintiffs one share for every 7.5 shares they own. AMC will provide an update with respect to the expected timetable for these events as additional information becomes available. [filing](https://d18rn0p25nwr6d.cloudfront.net/CIK-0001411579/5382e257-eb1f-4476-9afc-9680d1981c06.pdf) with the Securities and Exchange Commission on Monday, the world's largest movie theater chain said it had entered a binding settlement with investors and would ask a Delaware Chancellery Court judge to lift a related status quo order, clearing the way to complete the stock conversion, while also allowing a 10-to-1 reverse stock split to raise capital. Change % Change

(Bloomberg) -- The gap between AMC Entertainment Holdings Inc.'s common-stock price and its preferred shares is narrowing significantly, ...

AMC Entertainment (AMC) tumbled 23.7% Tuesday following the filing of a proposed binding settlement of a shareholder lawsuit that could pave the way for a ...

AMC common stock ( [APE](https://seekingalpha.com/symbol/APE)) is now at $3.90, while APEs are quoted at $1.69. [APE](https://seekingalpha.com/symbol/APE) rose 13.9% Tuesday. Now AMC and the lawsuit plaintiffs have agreed that the company will pay of-record common stockholders one additional share for each 7.5 shares they currently own, after accounting for the reverse split. [Seeking Alpha analysts](https://seekingalpha.com/symbol/AMC/ratings/author-ratings?source=content_type%3Areact%7Cfirst_level_url%3Asymbol%7Csection_asset%3ARatingSummary%7Cbutton%3ASA_Author_Rating) and [Wall Street analysts](https://seekingalpha.com/symbol/AMC/ratings/sell-side-ratings?source=content_type%3Areact%7Cfirst_level_url%3Asymbol%7Csection_asset%3ARatingSummary%7Cbutton%3AWall_st_Analysts_rating) each rate the stock a Sell, while Seeking Alpha's [Quant Ratings call AMC a Hold](https://seekingalpha.com/symbol/AMC/ratings/quant-ratings?source=content_type%3Areact%7Cfirst_level_url%3Asymbol%7Csection_asset%3ARatingSummary%7Cbutton%3AQuant_rating). That amounts to a total estimated payment of 6.9M common shares, or some $275M, B. [APE](https://seekingalpha.com/symbol/APE)) into common stock.