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id: 311, Created by Stan Vick, Scout
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On September 26, 2022, AMC Entertainment Holdings Inc. disclosed that going to sell up to 425.0 million APEs. Investors were disappointed that now AMC is planning to issue more preferred equity units because those equity units could eventually be converted to common shares, and that would create massive dilution to existing common shareholders.
AMC said it plans to use the proceeds "to repay, refinance, redeem or repurchase" existing debt.
On this news, AMC's stock slumped 14.5% and the Company lost more than $0.5 billion of its capitalization, seriously damaging investors.
Despite the reasonable desire of the Company to solve its debt problems, there are reasons to believe that its actions at the moment do not correspond to the best interests of shareholders.
Failure to Disclose,
Breach of Fiduciary duty,
Shock Event Date
26 September 2022