That’s when the movie theater chain will convert shares of AMC Entertainment Preferred Equity (NYSE:APE) stock into shares of AMC stock. Investors will also note that AMC Entertainment is planning a reverse stock split tomorrow.
AMC Entertainment first started offering APE shares last year as a way to raise funds and pay off debt. However, it decided to convert APE shares into AMC stock, which didn’t go over well with investors. The news even triggered an investor lawsuit against the company that delayed its conversion plans.
What’s Next for AMC Stock
The first thing worth noting is the reverse stock split. This will have the company consolidating down every 10 shares of AMC stock into a single share. That will boost the price of its stock while decreasing outstanding shares ahead of the dilution that will follow when the APE conversion goes into effect.
And that dilution isn’t sitting well with long-time investors in AMC stock. Estimates place the dilution at about 90%, which is massive. As such, it makes sense that AMC stock has been falling recently as investors sell shares.
AMC Entertainment already saw some 100 million shares change hands yesterday and another 16 million have traded this morning. For the record, its daily average trading volume is about 33 million shares.
AMC stock is down 22% as of Wednesday morning and down 35.1% since the start of the year.
Investors seeking out more of the most recent stock market news will want to stick around!
We’ve got all of the biggest stock market stories that traders need to know about on Wednesday! A few examples include why shares of Apellis Pharmaceuticals (NASDAQ:APLS) and BioNexus Gene Lab (NASDAQ:BGLC) stock are up, as well as the biggest pre-market stock movers this morning. We’ve got all of that news ready to go at the links below!
More Wednesday Stock Market News
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
On the date of publication, William White did not hold (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.