AMC’s stock fell premarket Monday after the movie theater chain and meme stock darling reached a deal to settle a shareholder lawsuit over the conversion of AMC Preferred Equity units into common stock
AMC Entertainment Holdings Inc.’s stock fell premarket Monday after the movie theater chain and meme stock darling reached a deal to settle a shareholder lawsuit over the conversion of AMC Preferred Equity units into common stock.
“AMC has recently reached an agreement to settle a putative stockholder class action concerning the proposed conversion of AMC Preferred Equity Units into Common Stock and reverse stock split,” the company tweeted on Saturday. “AMC stockholders who are class members have the right to object to the settlement and the deadline to do so is May 31, 2023,” the company added.
Shares of AMC (AMC) fell 2% before market open, while the APEs rose 1.9%.
AMC had been looking to resolve its proposed conversion of APE units. In a filing on April 3, AMC announced a settlement that paved the way for the stock conversion, alongside a 10-to-1 reverse stock split and the capacity to sell more shares. The move, which is part of the company’s ongoing battle to eliminate debt, faced court proceedings, however. A judge had denied AMC’s attempt to quickly resolve the court fight.
On Friday AMC reported better-than-expected first-quarter revenue and adjusted earnings. The company’s stock ended Friday’s session down 0.5%, compared with the S&P 500 index’s gain of 1.9%. AMC’s APE units ended Friday’s session unchanged.