Shareholders in AMC Entertainment Holdings have voted to allow the parent of AMC Theatres to convert AMC Preferred Equity Units, or so-called APEs,&

AMC Shareholders Approve ‘APE’ Stock Conversion to Raise Fresh Cash

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2023-03-14 17:00:08

Shareholders in AMC Entertainment Holdings have voted to allow the parent of AMC Theatres to convert AMC Preferred Equity Units, or so-called APEs, into the company’s common shares.

During a special shareholders meeting held on Tuesday, a preliminary report was announced to indicate the APE conversion proposal passed with 978 million votes, or 88 percent of those cast, okaying the measure, and another 124 million votes, or 11.2 percent, voting against the proposal. Just under one percent of shareholders abstained.

Shareholders by a similar margin voted yes to a second proposal by AMC to change its share structure by bringing about a reverse split of the company’s common shares at a ratio of 10:1. The wider goal is giving AMC more flexibility to issue additional common equity in the future. Related Stories Movies AMC Theatres, Walmart Partner on Retail Popcorn Business Business AMC Theatres Says It Raised $162M from APE Shares, Using Cash to Pay Down Debt and Fund Acquisitions

The results of the special shareholders meeting paves the way for the exhibition giant to continue raising fresh cash to reduce its debt load by selling stock, instead of APE units, and increasing its authorized share base.