AMC Shares Fall for Sixth Day as It Postpones Annual Meeting
(Bloomberg) -- AMC Entertainment Holdings Inc. shares fell for a sixth day as the movie chain pushed back its annual meeting at the last minute, bringing fresh upheaval to a company that just shelved plans for a massive stock offering.
The shareholder meeting, which had been scheduled for Tuesday, will now be held on July 29, AMC said in a statement. The move will give investors more time to “have their voices heard and more time to cast ballots on important shareholder matters,” the company said.
The stock dropped as much as 6.8% on Tuesday, erasing more of the gains from a Reddit-fueled run-up that sent the shares soaring earlier this year. The stock is still up more than fourfold in 2021.
After avoiding bankruptcy during the pandemic and reopening most of its theaters, AMC had sought to get on more solid footing by selling 500 million shares -- a move that could have sharply diluted the interest of current investors. But Chief Executive Officer Adam Aron backtracked, saying AMC wouldn’t sell the shares this year. Then he scrapped the plan altogether, citing shareholder criticism.
“Many of our stockholders are telling us to wait,” Aron said of the decision in a statement last week. “It is important to listen to these owners of our company, and that’s exactly what we are going to do.”
To attend and vote at the meeting, shareholders will now have to be on record as of June 2, and they’ll need to resubmit their votes if they already sent them.
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