AMC Entertainment Holdings Inc. on Tuesday won shareholder support to allow it to sell new common shares, giving it another lifeline as the movie-theater chain struggles to return to profitability amid continued weakness in cinema attendance.
People head to the entrance under the giant marquis at the AMC theatre when it re-opened for the first time since shutting down at the start of the COVID-19 pandemic, Aug. 20, 2020, in West Homestead, Pa. ( AP Photo/Keith Srakocic)
Shareholders voted in favor of a substantial increase in the number of common shares that AMC can sell, as well as for a 10-for-1 reverse stock split. The vote will enable AMC to convert its Ape units into common shares. The name for the Ape unit is a nod to the crowd of individual investors, known as apes, who helped rescue the chain from the brink of bankruptcy.
AMC had tried twice in 2021 to attain shareholder support to allow the company to sell more shares, but both times withdrew under pressure from its retail investor base, many of whom were concerned about dilution.