What The AMC Entertainment Court Ruling Means For Meme Stock: Risk Of 'Running Out Of Cash In 2024 Or 2025'
Portfolio Pulse from Chris Katje
AMC Entertainment Holdings Inc (NYSE:AMC) is seeing its shares and AMC Entertainment Preferred Equity Units (NYSE:APE) highly active in early trading following a court ruling against a company settlement proposal. The proposal would have seen AMC convert its APE preferred equity shares into common shares and enact a reverse stock split at a 10-for-1 ratio. The court ruling could take AMC back to the drawing board. AMC CEO Adam Aron said the company needs to raise capital, especially given the ongoing Hollywood work stoppage and strike. If AMC is unable to raise additional funds, the risk of running out of cash in 2024 or 2025 increases. If AMC continues to struggle, landlords like EPR Properties (NYSE:EPR) could face pressure.
July 24, 2023 | 3:07 pm
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NEGATIVE IMPACT
AMC's shares are highly active following a court ruling against a company settlement proposal. The company needs to raise capital or risk running out of cash by 2024 or 2025.
The court ruling against AMC's settlement proposal could take the company back to the drawing board and increase the risk of running out of cash by 2024 or 2025 if it is unable to raise additional funds.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Shares of AMC Entertainment Preferred Equity Units (APE) are highly active following a court ruling against a company settlement proposal.
The court ruling against AMC's settlement proposal could impact the activity of APE shares.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
EPR Properties could face pressure if AMC continues to struggle and face financial concerns.
EPR Properties, which counts movie theaters as one of its largest portfolio holdings, could face pressure if AMC continues to struggle and face financial concerns.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 80