Adam Aron, the Silverback CEO of AMC Entertainment Holdings announces a possible reverse stock split on Twitter.
According to Aron, AMC has successfully raised another $110 million of equity capital, bringing the total amount of new cash raised to $272 million over the past 90 days. In addition to this equity capital, the company has also arranged to convert $100 million of debt into equity at a substantial discount.
Aron says these financial moves have put AMC in a much stronger cash position. which of course is positive news for the company and its shareholders.
Reverse stock split incoming?
In the series of tweets, Aron goes on to say that the market price for APE stock is currently significantly discounted compared to the common stock price, and Aron floated the idea of holding a shareholder vote to convert the APE (AMC Preferred Equity) into AMC common in order to eliminate this discount, asking shareholders consider a 1:10 reverse stock split in the upcoming vote.
If approved, this split would reduce the number of shares outstanding, potentially leading to an increase in the stock price. It might also make life difficult for shorts. What a crying shame.
And the effect was dramatic and fast as APE stock soared 100% in the first hour of trading, but AMC stock sank around 17%....Before both were halted (what a fucking surprise)!
Here's Adam Aron's tweets:
This is a developing story. But we sure hope it makes life more difficult for Short Hedge Funds, including Kenny, who's a complete cunt.
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