AMC Entertainment Holdings, Inc. AMC shares are tanking on Monday after the stock gained nearly 20% last week. Here's what to know:
The Details:
Last week, AMC Entertainment announced a 10-to-1 reverse stock split and AMC Preferred Equity Units APE stock conversion plan.
AMC Entertainment CEO, Adam Aron said, “We can use this access to equity capital to shore up our cash reserves, pay down debt, invest in growth initiatives to strengthen our operating profitability and pursue transformative merger and acquisition opportunities.”
The reverse stock split will take effect on Thursday, and APE units will be converted to AMC common stock the following day. A filing authorized the number of AMC shares to be increased from approximately 542.2 million to 550 million shares.
AMC shares are moving lower on heavy trading volume. According to Benzinga Pro, more than 69.4 million shares have been traded in the session, compared to the stock's 100-day average of 29.33 million shares.
AMC shares have significant short inetrest with 29.69% of available shares being sold short.
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AMC Price Action: According to Benzinga Pro, AMC shares are down 24% at $3.11 at the time of publication.
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