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Shares of
AMC Entertainment
were sinking in late trading Friday after Bloomberg reported the firm won approval to move ahead with a planned conversion of AMC Preferred Equity, or APE, units into common shares.
AMC (ticker: AMC) stock was down 27% to $3.83. APE units soared 26%.
AMC shareholders voted in the spring to increase the amount of authorized shares, convert APE units to common stock, and execute a reverse stock split. The move was held up in court after some shareholders sued the firm, arguing its issuance of APE units were meant to circumnavigate common shareholders’ voting rights.
Though the company settled with the shareholders, it needed approval from the Delaware Chancery Court to move forward. An initial settlement was rejected. The revised settlement provides more shares to individual investors.
Write to Connor Smith at [email protected]
Source: https://www.barrons.com/articles/amc-stock-tumbles-ape-conversion-b9e79205?siteid=yhoof2&yptr=yahoo