AMC Entertainment (NYSE:AMC) stock is taking a beating on Monday after a court approved the company’s share conversion plan.
This stock conversion plan will have the company offering stock worth $129 million to holders of AMC stock. With this change to the plan, the company can move forward with its conversion of AMC Preferred Equity (NYSE:APE) stock.
It’s worth noting that the same judge that approved this plan had previously blocked it. Back on June 21, 2023, the Delaware court judge blocked that deal. This was due to it including APE shareholders not represented in the lawsuit against AMC Entertainment.
According to Wedbush analysts, this conversion plan will likely end up with the company’s common and preferred shares meeting at $3 each. AMC Entertainment intends to enact a reverse stock split after the conversion, which would likely result in its stock sitting at about $30 per share.
How This Affects AMC and APE Stock Today
Shares of AMC stock are down 38.4% alongside the court news. That also comes with some 15 million shares of the stock changing hands. For the record, its daily average trading volume is about 24 million shares.
On the flip side of that, shares of APE stock are up 18.5% on Monday morning. This is the result of 11.6 million shares of the stock being traded. For comparison, the daily average trading volume for these shares is 13,9 million units.
Investors keeping up with all of the hottest stock market news today will want to keep reading!
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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.
