Business

AMC Entertainment to effect 10:1 reverse split on Aug. 24

 AMC Entertainment Holdings said on Monday its 10-to-1 reverse stock split will take place on Aug. 24 and its preferred shares “APE” will be converted to common stock on Aug. 25.

The common shares of the theatre chain operator fell 38% to $3.25 in premarket trading, while its preferred shares rose 18% to $2.09.

AMC aims to increase its Class A common stock to 550 million from about 524 million, it said in a regulatory filing.

The company would make a settlement payment of one Class A common stock for every 7.5 Class A shares to the entitled shareholders after the reverse stock split.

The move follows a revised stockholder settlement, which was approved by a Delaware judge last week.

AMC was sued in February for allegedly rigging a shareholder vote that would allow it to convert preferred stock to common stock and issue hundreds of millions of new shares.

Source : Reuters

GLOBAL BUSINESS AND FINANCE MAGAZINE

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