Meet APE Stock – AMC’s dividend to all common shareholders

Key takeaways

  • AMC plans to issue a special one-time “dividend” to investors in the form of preferred shares
  • The company has also applied to list its new preferred stock under the NYSE ticker APE
  • The new class of shares carries the same voting rights as the existing common shares
  • The shares started trading on August 22

AMC Entertainment appears to have found a creative solution to increase its share count and raise funds after investors abandoned proposals to issue more shares last year.

AMC announced on Aug 4, 2022, that it will pay dividends to all common stockholders in preferred stock. The company has applied to list this preferred entity on the New York Stock Exchange under the symbol “APE,” a nod to retail investors who helped save the world’s largest cinema chain from bankruptcy in early 2021.

“Today we honor and recognize our passionate and supportive shareholders, both our US and international shareholders,” CEO Adam Aron said in a statement. “Shareholders will receive one AMC Preferred Unit for each AMC common share issued by the Company in their possession.”

The company expects to pay a dividend of about 517 million APE units later this month. The shares started trading on August 22. The new class of shares has the same voting rights as existing common stock, the company said in a statement.

AMC issued APE stock FAQ:

What is $APE?

$APE is a new class of preferred equity units issued by AMC Entertainment that was listed on the NYSE and commenced trading on Aug. 22.

Why is AMC issuing Preferred Equity Units?

According to AMC CEO Adam Aron, the new preferred equity “gives AMC a currency that can be used in the future to strengthen our balance sheet, including by paying down debt or raising fresh equity.” The issuance of AMC Preferred Equity Units was authorized by shareholders via a formal approval in 2013, per AMC Investor Relations.

Is AMC stock splitting?

While the issuance of Preferred Equity Dividends is not exactly the same as a stock split, AMC’s official statement noted that “on the ex-dividend date [Aug. 22], the price of AMC Common Stock is likely to decline to reflect the fact that shares purchased on or after such date would no longer be entitled to the dividend. This is similar to what occurs in a stock split.”

Will I get APE stock for my AMC holdings?

All $AMC positions purchased before market close on Aug. 19 on will be eligible to receive the $APE dividend. $APE dividends will be issued at the close of trading on Friday, Aug. 19.

Is $APE affiliated with the crypto asset ApeCoin?

No. $APE is a new class of stock issued by AMC Entertainment (APE) and is NOT related to the crypto asset ApeCoin.

How is managing APE dividend payouts?

At Public, we would be supporting the $APE dividend payouts for all $AMC positions purchased before market close on Aug. 19. For more information, please check out our support page here

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