AMC Entertainment (NYSE:AMC) stock is slipping on Wednesday after shareholders voted on a reverse stock split.
Stockholders in AMC voted in favor of a reverse stock split during a special meeting yesterday. To go along with that, investors also voted in favor of increasing the number of shares of the company’s stock. This is connected to its merger plans for AMC Entertainment Preferred Equity Units (NYSE:APE) shares.
Here’s what AMC Entertainment chairman and CEO Adam Aron had to say about the results:
“Shareholders overwhelmingly approved combining AMC common shares and APE units, with total votes 87% in favor, while significantly increasing the capacity to issue additional common shares, with total votes 88% in favor. If implemented, AMC should have an ability to raise a significant amount of equity capital in the months and years ahead.”
However, this doesn’t mean AMC Entertainment can move forward with its plans just yet. The company is currently dealing with shareholder litigation over the vote. It has a hearing on the matter scheduled for April 27, 2023.
What the Future Holds for AMC Stock
AMC Entertainment seeking to combine shares of AMC and APE stock is a major change for investors. As such, it makes sense any news would result in stock movement. On top of that, we’re likely to see further movement once results from the company’s court case come in. All of this means shareholders will want to keep an eye on both AMC and APE stock in the coming months.
AMC stock is down 10.2% as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
