AMC Entertainment has 4.1 million individual shareholders, the company revealed today, as it heads toward an annual meeting in late July, where all of them will be eligible to come forward and vote on whatever is on the agenda after spending months pushing the stock in. the investment chat. bedrooms.
“The number of investors who want to own a part of AMC continues to increase,” Chief Executive Officer Adam Aron said in a statement. He said that more than 80% of AMC’s shares are held by a broad base of retail investors, something highly unusual for large public companies, with an average holding of around 120 shares.
“Some have more and some have less, yet each and every shareholder is important to AMC. Every shareholder has a critical role to play in AMC’s future by making their voice heard by voting at our next shareholders meeting. By voting in favor of the proposals, together we can help position AMC, in its 101S t year of activity, for continued success over the next century, ”he said.
AMC Entertainment Raises $ 587.4 Million From Sale Of 11.6 Million Shares As Stocks Cool Red Hot – Update
AMC shares have soared from a 52-week low of under $ 2 to a high of close to $ 73 as retail investors in chat rooms from StockTwits to Reddit’s WallStreetBets showed love of the company, hatred of institutions perceived as shorts and adoration for Aron, who has leaned heavily towards the phenomenon.
The shares were down one day on Wednesday, closing about 10.4% at $ 49.34. Wall Street analysts say the stock price of steroids is totally divorced from the company’s finances, which are still recovering, although they have improved a lot. SEC Chairman Gary Gensler said today that he has asked agency staff to examine a variety of stock trading issues and rules, which are being closely scrutinized amid sharp swings in so-called meme stocks such as AMC, GameStop, and a handful of others.
The new head of the stock market watchdog did not mention names, but appeared to call out so-called market makers like Citadel Securities LLC and Virtu Financial, who pay retail brokers a fee to execute clients’ trade orders.
“Brokers benefit when investors trade,” Gensler told the Piper Sandler Global Exchange & FinTech Conference.
AMC has worked on raising the stock to raise cash by issuing shares and selling them at inflated prices. Aron said it will use the latest cash injection for acquisitions, including ArcLight Cinemas and Pacific Theaters, where the chain is in talks with owners.
But the stock sale angered some retail investors who turned to social media, saying they don’t want their stock positions to be diluted and worrying that additional stocks may help short sellers hedge positions.
The largest US exhibitor will issue a revised proxy on June 15 with its annual meeting agenda, set for July 29. It is expected to apply for authorization to sell more shares. There is also usually a vote on CEO compensation (non-binding) and on any proposal submitted by shareholders.
Last week, in a brilliant marketing move, Aron invited them all to a dedicated page on the company’s website where they could join the AMC Stubs loyalty program and get free popcorn. He tweeted over the weekend that, as of Saturday, more than 100,000 retail investors had become members of Stubs.