AMC Entertainment Holdings, Inc. Announces Special Dividend of AMC Preferred Stock Units
LEAWOOD, Kansas, August 04, 2022–(BUSINESS WIRE)–AMC Entertainment Holdings, Inc. (NYSE: AMC) (the “Company” or “AMC”) today announced that it has declared a special dividend of one unit of AMC’s preferred stock (one “AMC Preferred Share Unit”) for each Class A common share of AMC, par value of $0.01 per share (the “Common Shares”), outstanding at the close of business on August 15, 2022 The special dividend is expected to be paid at the close of business on August 15, 2022.
The Company has applied to list its AMC Preferred Stock Units on the New York Stock Exchange (“NYSE”) under the symbol “APE” effective August 22, 2022 and each AMC Preferred Stock Unit is designed to have the same economic and voting rights as a share of ordinary stock.
Units of AMC preferred stock may be converted into common stock, but only if the Company proposes and investors vote to approve an increase in the number of common stock authorized, in an amount at least sufficient to permit the conversion of the shares of AMC. AMC Preferred Stock. into common stock (through a “common stock amendment”).
Regarding the dividend, Adam Aron, President and CEO of AMC Entertainment, said, “Today, we reward and recognize our passionate and supportive shareholders, both to our shareholders in the United States and overseas, with a dividend of AMC preferred stock units that will trade on the NYSE under the symbol APE. Shareholders will receive one AMC Preferred Equity unit for each share issued by the company of AMC common stock that they hold. This means that based on our 516,820,595 shares outstanding, we will issue a dividend of 516,820,595 AMC Preferred Equity units.”
Aron added, “Issuing tradable AMC Preferred Stock Units only to our shareholders clarifies who is included in our current shareholder base and provides another opportunity for our investors to participate in the takeover and recovery. AMC’s ongoing growth.”
Aron emphasized, “Dividing shares of AMC Preferred Equity exclusively to our shareholders is, in our view, perhaps the biggest action we will take in 2022 to fundamentally strengthen AMC for the long term. This new AMC Preferred Equity gives to AMC a currency that can be used in the future to strengthen our balance sheet, including paying down debt or raising new equity. As a result, this significantly reduces any short-term survival risk for AMC as we continue to navigate our way through this pandemic. can also provide AMC with additional capital to enable us to pursue investment opportunities that could create significant shareholder value and could be transformative in nature. All of this is not a good news for those who might be rooting against AMC.
Aron continued, “As a sign of appreciation to our shareholders and to celebrate this preferred stock dividend from AMC, AMC will be issuing an exclusive ‘I OWN APE’ NFT. All 765,000 current members of AMC Investor Connect and new members who join by August 31, 2022, will be eligible to receive this unique NFT for free to symbolize ownership of the new AMC Preferred Equity unit title.Additionally, based on the popularity of the original “I OWN AMC” NFT issued In January 2022, AMC Current Investor Connect members and new members who joined on August 31, 2022 will also be entitled to receive an updated version of the original “I OWN AMC” NFT, again for free with our compliments .”
Aron concluded, “This preferred stock dividend from AMC has enormous potential to create significant value for both AMC and our shareholders as we continue our path to recovery and transformation into the new AMC – larger , bolder and stronger than ever.”
The issuance of AMC Preferred Share Units is made possible by the shareholders’ approval to issue AMC Preferred Shares in 2013. Each AMC Preferred Share Unit is a depository share and represents interest in one hundredth (1/100th) of a share. Series A Convertible Participating Preferred Shares of the Company (the “Preferred Shares”). Each preferred share is in turn potentially convertible into one hundred (100) common shares.
If the Common Share Amendment is adopted by shareholders, each AMC Preferred Share Unit will be converted into one common share and such Common Shares will be distributed upon conversion to AMC Preferred Share Unitholders on on a one-to-one basis (one share of common stock for each unit of AMC preferred stock held).
The record date for the AMC Preferred Equity Unit dividend is the close of business on August 15, 2022. However, the AMC Preferred Equity Unit dividend is expected to be paid at the close of business on August 19, 2022. The NYSE has established August 22, 2022 as the ex-dividend date. If an investor sells our common shares prior to the ex-dividend date of August 22, 2022, that investor will not be entitled to the AMC Preferred Equity Unit dividend on the shares sold. Alternatively, if investors purchase our common shares prior to the ex-dividend date of August 22, 2022, they will be entitled to receive the AMC Preferred Equity Unit dividend on the shares purchased. Investors trading during this time should consult their broker.
Trading in the AMC Preferred Stock Units will commence on August 22, 2022 (the ex-dividend date) at which time the AMC Shares will no longer be entitled to receive the stock unit dividend. favored by AMC. Investors should note that on the ex-dividend date (August 22, 2022), the price of AMC common stock may decline to reflect the fact that shares purchased on or after that date will no longer be entitled to the dividend.
For more information about AMC’s preferred stock units, preferred stock and convertibility of preferred stock to common stock, please visit the company’s website at http://investor.amctheatres.com /stock-information/APE-Dividend-Info and see the company’s current report on Form 8-K filed today with the Securities and Exchange Commission. The descriptions of the AMC Preferred Stock Units and the Preferred Stock are qualified by reference to the information and attachments on Form 8-K.
About AMC Entertainment Holdings, Inc.
AMC is the largest motion picture exhibition company in the United States, the largest in Europe, and the largest in the world with approximately 950 theaters and 10,500 screens worldwide. AMC has driven innovation in the exhibition industry by: deploying its Signature power reclining seats; provide enhanced food and beverage choices; generate greater customer engagement through its loyalty and subscription programs, website and mobile applications; offering premium large-format experiences and streaming a wide variety of content, including the latest Hollywood releases and independent programming.
This communication includes “forward-looking statements” within the meaning of the federal securities laws. Statements that are not historical facts, including statements about AMC’s beliefs and expectations, are forward-looking statements. In many instances, these forward-looking statements can be identified by the use of words such as “will”, “may”, “could”, “would”, “should”, “believe”, “expect”, “anticipates,” “estimates,” “intends,” “indicates,” “projects,” “goals,” “objectives,” “targets,” “predicts,” “plans,” “seeks,” and variations of such words and similar expressions. Examples of forward-looking statements include statements we make regarding future distributions to shareholders, the listing of AMC’s preferred stock units on the NYSE for trading, and the amendment on common equity, future balance sheet strengthening, including debt repayments, future capital and investment opportunities, potential shareholder value, and turnaround and transformation potential.
Additional factors, including developments related to COVID-19, that may cause actual results to differ materially from those described in the forward-looking statements are discussed under “Risk Factors” and elsewhere in our most recent Annual Report on Form 10. -K. and Quarterly Report on Form 10-Q, as well as our other filings with the United States Securities and Exchange Commission (the “SEC”), copies of which may be obtained by visiting our Investor Relations website at investor.amctheatres.com or the SEC website. website at www.sec.gov.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Forward-looking statements should not be construed as a guarantee of future performance or results and will not necessarily be precise indications of the times at which or by which such performance or results will be achieved. AMC does not intend and undertakes no obligation to update the information contained herein to reflect future events or circumstances, except as required by applicable law.
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