AMC Leisure Holdings (AMC) disclosed late Monday that it had reached a settlement that can let it go forward with plans to transform is AMC Leisure Most well-liked (APE) shares into frequent inventory. The information despatched AMC inventory plunging and APE inventory hovering after hours.
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AMC Leisure, in its SEC submitting, disclosed a binding settlement with plaintiffs within the shareholder lawsuit relating to the movie show chain’s inventory conversion plan. Plaintiffs will get frequent shares. In return, AMC and the plaintiffs will request {that a} “establishment order” be lifted, permitting for the conversion of APE inventory into AMC inventory.
AMC additionally will likely be allowed to hold out a 10-to-1 reverse inventory cut up and have the precise to promote extra shares.
Lifting the established order order nonetheless wants courtroom approval.
AMC Leisure issued AMC Most well-liked as a solution to elevate extra capital with out immediately points extra AMC frequent shares.
AMC inventory dived 24% to three.86, close to January’s two-year lows. APE inventory popped 21% to 1.79.
In idea, APE inventory needs to be price the identical as AMC inventory.
Please observe Ed Carson on Twitter at @IBD_ECarson for inventory market updates and extra.
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