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AMC’s Stock Conversion Is Over But Strategists Predict More Dilution
- Company’s shares have fallen by about two-thirds this week
- Cinema chain authorized to sell another 390 million of shares
The company converted AMC Preferred Equity units, or APEs, into common shares.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
AMC Entertainment Holdings Inc. extended its week-long selloff after the movie theater operator converted a raft of preferred shares into common stock, and strategists say the company will likely sell more shares to pay down debt.
On Friday, the company converted AMC Preferred Equity units, or APEs, into common shares, ending a lengthy battle after some common stockholders had tried to block the move. A day earlier, the company completed a 10-to-1 reverse stock split.