AMC Entertainment Holdings Inc.’s stock fell more than 10% in extended trading on Thursday after the company announced a special dividend in the form of “Ape” preferred shares. The dividend marks the latest move in a fight over stock issuances. AMC Entertainment Holdings Inc.
has turned to the special dividend after it was unable to gain shareholder approval to let it issue more common shares, according to the Wall Street Journal.
The special dividend of one AMC Preferred Equity unit will be issued for each share of AMC Class A common stock, par value $0.01 per share, outstanding at the close of business on Aug. 15. The special dividend is expected to be paid at the close of business on Aug. 19. AMC has applied to list its AMC Preferred Equity Units on the New York Stock Exchange under the symbol “APE,” starting Aug. 22. The symbol is a nod to the investors who turned the company into a meme stock, who often refer to themselves as “apes” or “ape nation.” “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 raising fresh equity,” said AMC Chief Executive Adam Aron, in a statement. “As a result, this dramatically lessens any near-term survival risk for AMC, as we continue to work our way through this pandemic.” AMC will be issuing an APE dividend for each of its 516,820,595 shares outstanding, according to Aron. “The issuance only to our shareholders of tradable AMC Preferred Equity units clarifies who is included in our current shareholder base,” he said in the statement. The company has faced unsubstantiated internet conspiracy …