AMC Entertainment Holdings posted a larger-than-expected loss due to a nearly 60% increase in costs in the second quarter.
The company also said it will pay a special dividend in the form of preferred shares.
Coupon of once popular meme stock 7% lower in pre-market trading as the move raised concerns about the potential for equity dilution.
AMC preferred shares can be converted into common shares with investor approval.
The Company will donate one preferred share for each common share AMC holds.
AMC is planning to list about 517 million preferred shares on New York Stock Exchange under the symbol “APE”.
“This new AMC preferred equity gives AMC a currency that can be used in the future to strengthen our balance sheet, including by paying down debt or increasing equity. new” CEO Adam Aron speak.
Quarterly revenue rose to $1.17 billion, beating previous estimates of $1.16 billion, while a net loss of 24 cents per share was larger than market expectations, according to Refinitiv data. 21 cents, according to Refinitiv data.
|AMC||AMC ENTERTAINMENT HOLDINGS INC||18.67||+0.46||+ 2.52%|
AMC’s market value skyrocketed last year in a rally fueled by retail investors, helping it raise billions of dollars in equity even as investors worried about erosion. the value of the company’s stock.
During the peak of coronavirus pandemic, AMC faces heavy losses as restrictions force theaters to close again.
Reuters contributed to this report.