As AMC Entertainment winds down an ill-fated plan to raise fresh capital and bolster its pandemic-battered coffers, the multiplex chain’s stock price, once bolstered by bored day traders, has fallen below $2.
That’s down 62.5% in under two weeks, following a judge’s approval of a revised shareholder settlement which in turn allowed the company to begin converting AMC Preferred Equity, or APE, stock units to regular shares. The issuance of APE units and the undoing of that plan have seemed equally unpopular with investors.
Eliminating the APE in theory should allow the theater chain to raise money, at the cost of diluting existing AMC shareholders.