AMC Entertainment appears to have found a creative solution to boost its share count and raise funds after investors balked at a proposal to issue more shares last year.
AMC on Thursday said it plans to issue a dividend to all common shareholders in the form of preferred shares. The company has applied to list these preferred equity units on the New York Stock Exchange under the symbol “APE,” a nod to the retail investors who helped rescue the largest movie theater chain in the world from the brink of bankruptcy in early 2021, dubbed “apes.”
Shares of AMC fell roughly 6% in extended trading Thursday.
“Today we are rewarding and recognizing our passionate and supportive shareholders, both to our shareholders in the U.S. and internationally,” CEO Adam Aron said in a statement. “Shareholders will receive one AMC Preferred Equity unit for each company issued share of AMC common stock that…