AMC proclaims particular dividend, quarterly loss

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.

AMC CEO: MOVIEGOERS SPENDING DESPITE INFLATION

An AMC theater parade in NYC

The image shows the AMC Empire 25 theater in Times Square in New York. (Photo by Evan Agostini / Invision / AP, File / AP Newsroom)

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”.

Adam Aron CEO of AMC Theater

AMC CEO Adam Aron. (Fox News / Fox News)

‚ÄúThis 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.

AMC REVENUE QUESTIONS AS A BACK CONVERTER FOR THE STORY

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 . theater lobby

Box office at the AMC Lincoln Square 13 cinema in New York. (Jeenah Moon/Bloomberg via Getty Images/Getty Images)

Ticker Guard Last Change Change %
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.

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During the peak of coronavirus pandemic, AMC faces heavy losses as restrictions force theaters to close again.

Reuters contributed to this report.

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