AMC Entertainment Holdings posted a larger-than-expected loss as costs rose nearly 60% in the second quarter.
The company also said it will pay a special dividend in the form of preferred stock.
shares Once the popular meme stock A 7% drop in pre-market trading as the move raised fears that capital could be diluted.
AMC’s preferred stock can be converted into common stock if investors agree to the move.
The company will award one preferred share for each common stock of AMC.
AMC plans to list about 517 million preferred shares in New York Stock Exchange Under the symbol “APE”.
“This new AMC Preferred Equity gives AMC currency that can be used in the future to strengthen our balance sheet, including by paying down debt or increasing new equity,” CEO Adam Aron He said.
Quarterly revenue rose to $1.17 billion, beating previous estimates of $1.16 billion, while a net loss of 24 cents a share was larger than market expectations of 21 cents, according to Refinitiv data.
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|AMC||AMC ENTERTAINMENT HOLDINGS INC||18.67||+0.46||+ 2.52%|
AMC’s market capitalization surged last year in a rally led by retail investors, helping it raise billions of dollars in equity capital even at the expense of investors worried about eroding the value of its shares.
during the climax coronavirus pandemic, AMC faced heavy losses as restrictions forced theaters to close again.
Reuters contributed to this report.
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