Antara Capital LP has disclosed a new massive short position against AMC Entertainment (NYSE:AMC).
The institution has disclosed a whopping 55 million shares in put options valued at more than $277 million.
This is one of the largest short positions ever seen placed against the movie theatre chain.
Antara Capital only has 1 million shares in call options for AMC; this means its short position against the company is a 5,500% difference.
In April, Antara disclosed it shorted AMC Entertainment stock in an SEC filing.
“The exercise of a call option by a third-party holder obligated Antara Master Fund to effect a short sale of 10,700 shares of Class A Common Stock and borrow shares from an unaffiliated broker for delivery against the sale.”
“The exercise of a call option by a third-party holder obligated Antara Master Fund to effect a short sale of 600 shares of Class A Common Stock and borrow shares from an unaffiliated broker for delivery against the sale,” said the filing.
Antara disclosed shorting 11,300 total shares of AMC Entertainment from Wednesday, April 19 through Thursday, April 20.
The institution has been selling AMC stock all year according to their insider transaction history.
Some investors have criticized CEO Adam Aron for conducting business with Antara in the first place.
Adam Aron and Antara Deal
AMC Entertainment confirmed in an SEC filing that its registered up to 232M of its AMC Preferred Equity (NYSE:APE) for Antara Capital, fulfilling the obligations of a forward agreement.
The move was previously announced in early February, when AMC issued 106.6 million APEs to Antara for a purchase price of $75.10 million.
A month later, Antara cashed out a whopping $72.4 million of APE shares.
An SEC filing shows the company disposed more than 48 million APE shares at the price of $1.51 on Wednesday March 15.
Shares of the equity fell on Wednesday from its opening high of $1.65 to $1.42.
Soon, retail investors will no longer be able to purchase the equity as the shareholder vote to merge APE and AMC common stock has been approved.
“Saving AMC is my professional mission. And remember that I own millions of AMC shares and APE units too. So, I very much want for AMC to succeed. I am absolutely and passionately convinced that what you approved today is in the best interests of AMC and of all our shareholders.”
AMC’s CFO Sean Goodman managed to collect $230K from selling nearly all his shares.
AMC stock is currently up +28.75% this year-to-date while APE is up nearly +33% this year-to-date.
Positive AMC Stock News
Paul Dergarabedian, Comscore senior media analyst predicts AMC Entertainment revenue will soar this summer as the industry begins to take off.
Disney’s “Guardians of the Galaxy Vol. 3” exceeded box office expectations this past weekend, securing $118.4 million domestically to bring its global total to $289.3 million.
IMAX announced it grossed $25 million from the debut — the company’s biggest global opening thus far in 2023.
Those results, on top of Universal’s “The Super Mario Bros. Movie,” which surpassed $500 million domestically, adds to early momentum heading into the summer box office season.
“I think it’s going to rival the pre-pandemic levels for summer box office,” Paul Dergarabedian, Comscore senior media analyst, told Yahoo Finance.
Dergarabedian says that upcoming films like Pixar’s “Elemental,” Disney’s “The Little Mermaid,” Universal’s “Oppenheimer,” and Warner Bros. “Barbie” as just some of the many films that will drive revenue for AMC Entertainment.
“This is just a bevy of riches on the way at the multiplex,” he said.
According to the latest data from Comscore, total domestic box office grosses have hit $2.85 billion so far this year, 23.3% below 2019’s $3.74 billion over that same time period.
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