The stock split would mean that every shareholder would receive one share for every ten they own.
AMC will hold a special meeting to vote on the 1:10 reverse stock split and the conversion of APE units into common stock.Īntara will hold onto its APE units for up to 90 days, but they will vote in favor of the proposals at this special meeting. The COVID-19 lockdowns financially crippled the company and put them in a dire position. Tryq About the Large Cap Kit | Q.ai - a Forbes company There will also be a vote regarding converting APE units into AMC shares. As a result of this proposal, they will have to hold a special meeting for APE and AMC shareholders to vote on this. AMC will hold a special meeting for APE and AMC shareholders to voteĪMC announced a proposed reverse stock split of shares at a 1:10 ratio. While stock splits are common, and we even saw them with major companies like Amazon and Tesla, reverse stock splits are rare. While the APE phrase is catchy, the reality is that AMC created the new preferred equity units because vocal investors criticized the company’s plan to raise funds by issuing more shares of its common stock. The actual APE acronym is aimed at the Reddit investors who refer to themselves as “apes” in what’s a slang term for the loyal folks on these forums who share stock tips. I would bet serious money that a large percentage of the AMC bag holders are looking to get out as soon as they can.Antara will also exchange $100 million in debt for roughly 91 million APE units, allowing AMC to drop the annual interest expense by around $10 million.ĪPEs, short for AMC Preferred Equity, started trading last summer when the company looked for creative ways to raise capital to pay down its debt load that exceeded $5 billion. It might seem like everyone on this sub is holding, but this is the internet, anyone can say anything they want to. The time for AMC to squeeze was 2 months ago. The level of retail support that is needed for a GME level squeeze is just not there anymore. If you look at Google Trends you'll see that the search popularity for AMC is roughly 20% of what is was 2 months ago. Everyone, I mean everyone, was involved in GME. The reason the GME squeeze 2 months ago was able to happen was because there was an unprecedented amount of retail support - I mean wsb literally went from 2mil to 8million subscribers in a week. You're saying that "we" set the price - how do you know "we" actually have the ability to set the price? If "we" actually had that ability, shouldn't the stock be much higher than it is right now? I think you're greatly overestimating the impact that retail has on the price of certain stocks like AMC. Additionally, the apes (people that are on reddit holding AMC or GME) will not sell, so the shorts have to buy back their shares when they get margin called at ANY PRICE THAT IS AVAILABLE. With the short squeeze lasting days/weeks and other shorts getting margin called, it will exponentially grow the price. Mathematically, its guaranteed to go to at least 40. It can go to an infinite number if the shorts have to buy back 25% of the whole outstanding shares.
If that is true, then we decide the price. All over reddit (millions of people), there are people saying that they will hold til AMC hits 100k. When the price goes higher, the shorts will still be covering on the way up. When the shorts cover, the price goes higher. If AMC has 25% short interest, that means there is 112.5 million shares shorted (450m times 25 percent). Its about the supply and demand of the stock. Its not about the fundamentals of the company.
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