AMC stock plunges amid $APE debut, Cineworld troubles

AMC Entertainment is officially going “APE” in an effort to further solidify its financial future as its primary rival Cineworld says it’s exploring a bankruptcy.

The company’s new class of shares — dubbed APE in a nod to the retail investors who powered the stock during the COVID-19 pandemic and commonly refer to themselves as apes — is slated to begin trading on the NYSE sometime today. The ticker symbol will be $APE.

A single APE unit will be granted for each common share, meaning that about 517 million shares of this new stock will be formed.

AMC stock fell more than 34% in early trading on Monday.

AMC Entertainment CEO Adam Aron told Yahoo Finance Live (video above) that the company’s new AMC Preferred Equity (APE) shares should allay fears that the movie chain could cripple under the weight of debt incurred during the COVID-19 pandemic.

“It takes survival risk off the table in the near term,” Aron said. “So we can raise cash if we need it. That is good for our…

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This article was written by and originally published on finance.yahoo.com