After seven consecutive days of losses, shares of AMC Entertainment Holdings Inc. finally ended Monday’s session up 0.9%. The movie-theater chain and meme-stock darling had been experiencing their longest losing streak since Jan. 27, 2022, when they fell for a duration of 11 straight trading days. Comparatively, AMC’s stock has only dropped by 0.6% this year as opposed to the S&P 500 index’s gain of 12.7%.
APE-Conversion Settlement Approval Awaited
Meanwhile, AMC’s Preferred Equity units closed down 0.8% ahead of a significant hearing this week in which AMC hopes to convert APEs to common stock. AMC shareholders voted in favor of the proposed conversion in March, which will aid in the company’s ongoing efforts to eliminate debt. If all goes well and the settlement proposal is approved, it could lead to a potentially massive $16 billion equity raise for AMC.
Of the eight analysts surveyed by FactSet, three have given AMC a hold rating while five have given it a sell rating. A hearing on the APE-conversion settlement proposal is set to take place at the Delaware Chancery Court on Thursday and Friday, with a decision expected at a later date.
