Why AMC Shares Are Ripping Higher Premarket Today
Portfolio Pulse from Shanthi Rexaline
Shares of AMC Entertainment Holdings, Inc. (NYSE:AMC) are surging premarket following the Delaware Court of Chancery’s ruling against a settlement proposed by the company to convert its preferred equity shares (APEs) into common shares and implement a 10-for-1 reverse stock split. The company intended to raise capital to avert potential bankruptcy, but the plan was met with opposition from shareholders. AMC CEO Adam Aron emphasized the need for fresh equity and warned of the company running out of cash in 2024 or 2025.
July 24, 2023 | 11:01 am
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AMC's stock is surging following a court ruling against its plan to convert preferred shares and implement a reverse stock split. The company's inability to raise capital could lead to a cash shortage by 2024 or 2025.
The court ruling against AMC's plan to convert preferred shares and implement a reverse stock split has led to a surge in the company's stock. However, the inability to raise capital could lead to a cash shortage in the future, which could negatively impact the company's financial stability and stock price.
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