AMC announces 10-for-1 reverse stock split effective August 24

AMC Entertainment said it filed an amendment to increase the total number of authorized shares of the company’s class A common stock from 524,173,073 to 550,000,000 shares of common stock and effectuate a reverse stock split at a ratio of one share of class A common stock for every ten shares of class A common stock, in each case, effective as of August 24. The reverse stock Split together with the share increase will permit the conversion of all of the company’s outstanding AMC preferred equity units, known as “APEs,” into shares of class A common stock. The company expects the APEs to cease trading on August 25 and subsequently be delisted from the New York Stock Exchange. Shares of AMC are down 37% to $3.32 in early trading.