AMC Stock Dives, APE Preferred Stock rises on settlement of stock transfer

AMC Entertainment Holdings (AMC) revealed late Monday that it had reached a settlement that would allow it to move forward with conversion plans AMC Entertainment preferred (monkey) shares in common stock. This news sent AMC stock lower and APE stock higher after hours.


AMC Entertainment, in its SEC filing, disclosed a binding settlement with plaintiffs in a shareholder lawsuit related to the movie theater chain’s stock transfer plan. Plaintiffs will receive ordinary shares. In exchange, AMC and the plaintiffs would request that the “status quo order” be lifted, allowing APE stock to be converted into AMC stock.

AMC will also be allowed to carry out a reverse stock split from 1 to 10 and have the right to sell more shares.

Lifting the status quo order still needs court approval.

AMC Entertainment issued AMC Preferred as a way to raise capital without issuing more AMC common stock.

AMC stock fell 22% to 3.98, near its January lows. APE stock rose 22% to 1.81.

In theory, APE stock should be equal to AMC stock.

Please follow Ed Carson on Twitter at @employee For stock market updates and more.

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