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Investors in AMC will switch to APE, the business says

You may have heard of AMC, the theatre company with the pantless CEO, who’ve embraced the meme stock phenomenon to the most extent. AMC may have been saved from bankruptcy by a horde of eager retail investors. AMC is now attempting to re-capitalize the firm by enlisting the help of these investors once again.

Shareholders of AMC will receive AMC Preferred Equity units, which will be traded on the New York Stock Exchange under the symbol APE. Every common share will include one of these babies, which may be converted to common stock at the company’s discretion and the approval of investors.

That “if” is a bit of a thorn in my side. Investors knocked down AMC’s plan to sell additional stock. AMC sold a large number of shares during the epidemic, so it’s possible that investors didn’t want their stakes further diluted. I don’t know whether anything else was going on. Yet the remedy — APE — is more than simply a clever marketing gimmick to keep the retail sector interested. End run around the shareholders who voted against further shares. The Wall Street Journal says that AMC may sell 4.5 billion units of APE after providing investors roughly 500 million shares.

After market, the information was made public. Shares of AMC finished the day at $18.66, but by 5 p.m. ET, they were down almost 8% to $17.16, indicating that investors aren’t exactly enamoured with the proposal. Some investors may have been disappointed by the company’s earnings report, which was also made public today. The epidemic hasn’t helped AMC’s bottom line.