AMC Entertainment shares are trading lower ahead of a 10-to-1 reverse stock split scheduled to take effect Thursday. AMC Preferred Equity Units will be converted to AMC common stock the following day.
Portfolio Pulse from Benzinga Newsdesk
AMC Entertainment is planning a 10-to-1 reverse stock split that will take effect on Thursday. The company's Preferred Equity Units will be converted to common stock the following day. This has led to a decrease in AMC's share price.
August 23, 2023 | 5:52 pm
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AMC Entertainment's upcoming 10-to-1 reverse stock split and conversion of Preferred Equity Units to common stock has led to a decrease in the company's share price.
Reverse stock splits often lead to a decrease in share price as they can be perceived as a sign of trouble within the company. Additionally, the conversion of Preferred Equity Units to common stock can dilute the value of existing shares, leading to a decrease in share price.
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