Both stocks could trade at the same value on APE’s NYSE debut but that will probably change quickly depending on market conditions. To determine why these prodigious primates died out, a team of scientists recently analyzed clues preserved in Gigantopithecus teeth and cave sediment. Their findings, published Wednesday in the journal Nature, reveal that these nearly 10-foot-tall apes were most likely doomed by their specialized diet and an inability to adapt to a changing environment. Per the AMC Sec filing, all shareholders of $APE will be eligible to claim the “I own APE” NFT. The company plans to issue a new stock to thank investors who have helped the exhibitor turn around its fortunes. Handler has a sell rating and a price target of just $1 per share on AMC.
Preferred equity units contain the ability to have a higher priority for distributions or rights compared to common stock in a company. According to AMC’s official filing, $AMC shareholders will receive one AMC Preferred Equity unit for each company-issued share of AMC common stock that they own. The theater chain’s new preferred share class — called “APE” units — begin trading on Monday after being distributed to shareholders as a dividend last week.
- Bonds with higher yields or offered by issuers with lower credit ratings generally carry a higher degree of risk.
- The stock surge helped the company strengthen its financial position, as executives seized upon it to sell shares and repurchase debt.
- The company expects to issue a dividend of around 517 million APE units later this month.
- When its stock price soared in 2021, the beleaguered theater chain sold millions of common shares to keep itself afloat during the pandemic, but eventually it ran out of its allotment.
- Shareholders should expect to receive their APE shares after markets close on Friday, August 19, with the company to begin trading on an ex-dividend basis August 22.
- Investors can choose to invest in AMC and/or APE shares and the two have already exhibited different trading patterns.
In the decades since, scientists have unearthed about 2,000 Gigantopithecus teeth and a handful of fossil jawbones from caves throughout southern China. Standing nearly as tall as a basketball hoop and weighing as much as a grizzly bear, Gigantopithecus blacki was the greatest ape to ever live. For more than a million years during the Pleistocene, Gigantopithecus roamed southern China.
APE Dividend Growth CAGR
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In a reverse stock split, the share count drops and the share price rises. A 1-for-10 reverse split like AMC’s should slash the share count to 10% and add a zero to the stock price. CEO Adam Aron has already tried multiple strategies to appeal to these investors that might not actually care much for the underlying company but want to profit off the extreme market sentiment surrounding it. Releasing the APEs not only references how some of these investors refer to themselves, but also allows the firm to bypass the need to increase the number of common shares.
AMC Theatres’ Shareholders Vote Against CEO Adam Aron’s $23.7M Pay Package
See, AMC wanted to sell more shares and was shot down by investors. Maybe those investors didn’t want to be further diluted — AMC sold a lot of shares during the pandemic. But APE, the solution, isn’t just a nice marketing ploy to keep retail’s attention.
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Another key aspect of the preferred units is that they do not require the consent of holders to issue additional units. AMC is approved to issue up to 1 billion APE units with its board able to authorize up to 5 billion. Currently the company has issued just over half of its approved questrade forex preferred shares with the special dividend. AMC can sell more in order to raise cash or pay down some of its $10 billion in debt and long-term liabilities. However, the APE units are a corporate finance tool at their core because the shares create a new way for AMC to raise money.
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The new preferred stock will be listed on the NYSE under the ticker symbol APE – representing not only AMC Preferred Equity but also a nod to the company’s meme-friendly fanboy investors. And upon authorization by the company and investors, it could be convertible to AMC common shares. AMC Theatres CEO Adam Aron isn’t moving away from his very online persona. The executive on Thursday announced AMC will issue dividends in the form of preferred equity stock units.
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AMC also reported its second-quarter results after market close, reporting a narrowing loss and revenue in line with analysts’ expectations. The movie-theater chain reported a net loss of $121.6 million, or a net loss of 24 cents a share, compared with a net loss of 344 million, or a net loss of 71 cents a share, in the same period last year. AMC announced plans to reverse split its stock and convert the APE shares in December 2022. The company, needing shareholder approval for both initiatives, scheduled the shareholder vote for March 2023.
Ratings – APE
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A current holder will still hold the same amount of notional value in the stock as they had pre-split, with more shares of the stock at a lower spot price. These preferred equity units are a workaround, of sorts, and free AMC up to sell additional units of stock as it continues to revive its business after the pandemic. After offering the 517 million APE units, AMC will still have around 4.5 billion units remaining that it could sell to raise funds. Following Thursday’s news that the world’s No. 1 exhibitor was awarding APE investors with one AMC preferred Equity share for each AMC Class A common stock, AMC’s stock price jumped 31% on Friday from $16.97 to $22.18.
Aron also looked ahead to next year as he predicted a continuing box office recovery. “Our current internal forecast is that the 2023 domestic box office, the basic metric suggesting the health of theatrical exhibition both in the U.S. and globally, will be billions of dollars larger than that of 2022. We look forward to Q4 of 2022 and calendar year 2023 with glee,” Aron said. Attendance reached 59 million people, up 168 percent from 22 million a year earlier. Aron cited the popularity of films such as Doctor Strange in the Multiverse of Madness, Elvis and Top Gun for boosting attendance during the latest financial quarter.