AMC Has Some Clever APEs
Also active ESG share, M&A drafting, and people have stopped worrying about bond market liquidity.
We have talked a few times recently about the cleverness of AMC Entertainment Holdings Inc.’s APE stock issuance plan, but I am ashamed to admit that I missed the cleverest part. I now propose to fix that.
The situation with the APEs is this. In the last couple of years, AMC has sold a ton of stock, largely at meme-driven high prices, and has used the money for corporate finance purposes like avoiding bankruptcy and, uh, getting into gold mining. It would like to sell more stock, but it has a problem. Under its corporate charter, it only has 524,173,073 authorized common shares, and has issued more or less all of them. (There are 517,580,416 shares outstanding at last count.) It still needs money, but it has no more shares to sell.