Matt Winkelmeyer
AMC Entertainment (New York Stock Exchange: AMC) confirmed in an SEC filing that it has registered up to 232 million of its AMC Preferred Equity (APE) units for Antara Capital, fulfilling the obligations of a forward purchase agreement.
The move was previously announced. in early February, when AMC issued 106.6 million APEs to Antara for a total purchase price of $75.1 million, and simultaneously purchased $100 million in principal from Antara for its outstanding 10%/12 second lien notes % Cash/PIK due 2026 in exchange for just over 91 million APE.
In December, Antara confirmed a $34.9 million purchase of APE’s 60 million under an on-the-market program.
The new filing represents a promised prospectus supplement, and comes just days before a key shareholder vote on March 14 on converting APE to AMC common stock and seeking a reverse 1-for-1 stock split. 10.
AMC Entertainment (AMC) shares are down 4.4% (albeit in the midst of a broad stock market downdraft), and Preferred Capital Units (APEs) are down 6.7%.
Meanwhile, CEO Adam Aron beats the drum for incumbents to vote in favor of the company’s plan. On Thursday, he noted on Twitter that many shareholders have yet to vote in the special election.
“It’s happening as scheduled on March 14. I strongly encourage you to make your voice heard. I strongly encourage you to vote.” Aron tweeted.
And Aron is also using his Twitter megaphone to blast suspected short sellers manipulating stocks. This week he noted that AMC stock has spent a few weeks in the NYSE Threshold List.
That list comprises stocks whose transactions did not settle properly for five consecutive days, a potential indicator of improper naked shorting (although also potentially just clerical errors).
“Many of you, and we, are aware that AMC Entertainment has been on ‘The Threshold List’ for over 3 weeks, indicating a series of FTD (failure to deliver),” Aron tweeted. “Some of you may be pleased to know that we have contacted FINRA and NYSE asking them to closely watch our stock trading.”
