LEAWOOD, Kan.–(COMMERCIAL WIRE)–AMC Entertainment Holdings, Inc. (NYSE: AMC) (the “Company” or “AMC”), announced today that it has declared a special dividend from an AMC Preferred Equity Unit (an “AMC Preferred Equity Unit “) for each AMC Class A common share, par value $0.01 per share (the “Common Shares”), outstanding at the close of business on August 15, 2022. The special dividend is expected to be paid at the close of business on August 15, 2022. 19, 2022.
The Company applied to list its AMC Preferred Equity Units on the New York Stock Exchange (“NYSE”) under the symbol “APE” effective August 22, 2022 and each AMC Preferred Equity Unit is designed to have the same economic and voting rights as a share of ordinary shares.
AMC Preferred Stock Units may be converted to common stock, but only if the Company proposes and investors vote to approve an increase in the number of authorized common shares, in an amount at least sufficient to allow the conversion of the Stock Units. AMC Preferred. in Common Stock (through a “Common Stock Modification”).
Regarding the dividend, Adam Aron, Chairman and CEO of AMC Entertainment, commented: “Today we are rewarding and recognizing our passionate and supportive shareholders, both for our shareholders in the US and internationally, with a dividend of units of AMC Preferred Equity that will trade on the NYSE under the ticker symbol APE. Shareholders will receive one unit of AMC Preferred Equity for each common share issued by the AMC company they own. This means that based on our 516,820,595 shares outstanding, we will issue a dividend of 516,820,595 units of AMC Preferred Equity.”
Aron added, “The issuance to our shareholders only of AMC Preferred Equity trading units clarifies who is included in our current shareholder base and provides another avenue for our investors to participate in AMC’s continued recovery and growth.”
Aron emphasized: “In our opinion, the dividend from AMC Preferred Equity units exclusively to our shareholders is perhaps the most important action we will take in all of 2022 to fundamentally strengthen AMC for the long term. This new AMC Preferred Equity gives AMC currency that can be used in the future to strengthen our balance sheet, including paying down debt or raising new equity. As a result, this dramatically reduces any short-term survival risk to AMC, as we continue to make our way through this pandemic. You may also provide AMC with additional capital to enable us to pursue investment opportunities that could create significant shareholder value and could be transformative in nature. All of this is not good news for those who may be rooting for AMC.”
Aron continued, “As a token of our appreciation to our shareholders, and to celebrate this AMC Preferred Equity unit dividend, AMC will issue an exclusive “I OWN APE” NFT. The 765,000 current members of AMC Investor Connect and new members who join before August 31, 2022 will be eligible to receive this unique NFT for free to symbolize ownership of the new unit value of AMC Preferred Equity. Additionally, based on the popularity of the original “I OWN AMC” NFT broadcast in January 2022, current AMC Investor Connect members and new members who joined before August 31, 2022 will also be eligible to receive a free version. updated from the original. “I OWN AMC” NFT, again free with our praise.”
Aron concluded, “This dividend from the AMC Preferred Equity unit has tremendous potential to create significant value for both AMC and our shareholders as we continue on our path to recovery and transformation into the new AMC: bigger, better. bold and stronger than ever.
The issuance of AMC Preferred Equity Units is made possible by the approved shareholder authorization to issue AMC Preferred Equity Units in 2013. Each AMC Preferred Equity Unit is a depository share and represents one one-hundredth (1/100) holding of a share. of the Company’s Series A Convertible Participating Preferred Stock (the “Preferred Stock”). Each share of Preferred Stock in turn is potentially convertible into one hundred (100) shares of Common Stock.
If shareholders adopt the Common Stock Amendment, each AMC Preferred Stock Unit will be converted into one share of Common Stock and such Common Stock will be distributed upon conversion to holders of AMC Preferred Stock Units on a one-for-one (one share of common stock for each unit of AMC preferred stock held).
The record date for the AMC Preferred Equity Unit dividend is the close of business on August 15, 2022. However, the AMC Preferred Equity Unit dividend is expected to be paid at the close of business on August 19, 2022. The NYSE has established August 22, 2022 as the ex-dividend date. If an investor sells our Common Stock before the ex-dividend date of August 22, 2022, that investor will not be entitled to the AMC Preferred Equity Unit dividend on the shares that are sold. Alternatively, if investors purchase our Common Stock prior to the ex-dividend date of August 22, 2022, they will be entitled to receive the AMC Preferred Equity Unit dividend on the shares purchased. Investors trading during this period should check with their broker.
Trading in the AMC Preferred Stock Units will begin on August 22, 2022 (the ex-dividend date), at which time AMC shares will no longer be entitled to receive the dividend from the AMC Preferred Stock Units. . Investors should note that on the ex-dividend date (August 22, 2022) the price of AMC’s common stock is likely to decline to reflect the fact that shares purchased on or after that date will no longer be vested. to the dividend.
For additional information on AMC Preferred Stock Units, preferred stock and the convertibility of preferred stock into common stock, please visit the Company’s website at http://investor.amctheatres.com/stock-information/APE -Dividend-Info and view the Company’s current report on Form 8-K filed today with the Securities and Exchange Commission. Descriptions of the AMC Preferred Equity Units and Preferred Stock are qualified by reference to the Form 8-K disclosures and schedules.
About AMC Entertainment Holdings, Inc.
AMC is the largest motion picture exhibition company in the United States, the largest in Europe, and the largest in the world with approximately 950 theaters and 10,500 screens worldwide. AMC has driven innovation in the exhibit industry by: implementing its Signature power reclining seats; offer enhanced food and beverage options; generate greater guest engagement through its loyalty and subscription programs, website and mobile applications; offering premium wide-format experiences and playing a wide variety of content, including the latest Hollywood releases and independent programming.
This communication includes “forward-looking statements” within the meaning of the federal securities laws. Statements that are not historical facts, including statements about AMC’s beliefs and expectations, are forward-looking statements. In many cases, these forward-looking statements can be identified by the use of words such as “will”, “could”, “could”, “would”, “should”, “believes”, “expects”, “anticipates”, “estimates” , “intends”, “indicates”, “projects”, “goals”, “targets”, “targets”, “predicts”, “plans”, “seeks” and variations of these words and similar expressions. include statements we make regarding future shareholder distributions, the listing of AMC Preferred Equity Units on the New York Stock Exchange for trading and the Common Stock Amendment, future balance sheet strengthening, including debt payments, future capital and investment opportunities, potential shareholder value, and potential recovery and transformation.
Additional factors, including developments related to COVID-19, that may cause results to differ materially from those described in forward-looking statements are set forth under the heading “Risk Factors” and elsewhere in our most recent annual report on the Form 10-K. and quarterly report on Form 10-Q, as well as our other filings with the U.S. Securities and Exchange Commission (the “SEC”), copies of which may be obtained by visiting our Investor Relations website at investor .amctheatres.com or the SEC’s website at www.sec.gov.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be precise indications of when such performance or results will be achieved. AMC does not intend, and undertakes no obligation, to update the information contained in this document to reflect future events or circumstances, except as required by applicable law.
Category: Company Launch