AMC shareholders have been urging CEO Adam Aron to address APE, AMC’s Preferred Equity as shares fall below $1.
APE has taken a nosedive from $7 to the current share price of $0.68.
Retail investors have demanded the CEO to speak out on what’s happening with the share price after bold announcements of a ‘pounce’ earlier this summer.
The CEO has now spoken out on the falling APE share price in a new press release shown below.
Let’s dive right into it.
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Adam Aron on APE Share Price
In a new press release by AMC Entertainment, the CEO released the following statement:
“Even though the APE units and our common shares are economically equivalent, it is disappointing that the APE units have since inception consistently traded at a significant discount to the AMC common shares.
While the trading prices of the two securities seem to reflect distinct market and trading dynamics, the APEs are serving precisely the purpose originally intended for them.
At a time when one or more of our competitors have been facing potentially devastating liquidity challenges, by contrast during the past 90 days, AMC has been able to raise $162 million of additional cash through the sale of equity thereby improving our own liquidity position markedly.
In addition, AMC reduced debt for the third time this year, including most recently by buying back debt at a substantial 61% discount and is able to contemplate various opportunities to add theatres to our fleet including just having successfully secured for AMC the attractive former Arclight Boston.”
Adam Aron added, “Our outlook for the industry is positive as we expect the box office will be larger in 2023 than in 2022.
Our liquidity position is strong, as we continue to demonstrate our ability to raise cash, thereby strengthening our balance sheet.
We also continue to enhance our footprint by acquiring superb theatres without significant capital outlays while at the same time exiting under-performing locations.
For so many reasons, we believe the future remains bright for AMC.”
APE Continues to Serve Its Original Purpose
Despite Adam Aron’s disappointment in the share price of APE, he says the equity continues to serve its original purpose to provide liquidity to the company.
APE is down -88.67% since its inception with majority of the float being held by retail investors.
Only 0.18% of institutional investors are currently holding the equity according to a Nasdaq report.
There was tension between shareholders whether to sell or hold the security once it became available in the market due to primarily being a liquidity tool for the company rather than an investment for retail investors.
In October, AMC Entertainment released a statement warning both retail investors and short sellers of the possibility of accrued losses through either the possibility of a short squeeze, or company capitalization.
Earlier in December, Yahoo Finance listed APE as the #1 top shorted stock on their list.
Are You Holding APE Shares?
What is your current sentiment on APE?
Will APE shares recover or is too much trading happening in dark exchanges that suppress retail volume from having an impact on share prices?
Leave your thoughts in the comment section down below.
Related: Chairman Gensler Says He Understands Retail’s Frustrations
Swipe and Choose! 👇
About The Author
Everything done in the dark (pool) shall come to light!
Same here. Had I known the level of corruption in our market and government I would have NEVER invested. I have no choice but to hold now. Wonder how many more “tokenized” shares are floating around as well.
If like me you are below what you paid for the stock, I believe, one has no choice but to hold. Do not fear the stocks will rise in value.
I do believe Aron and fellow directors owe us for buying and holding the shares so time to stop their silence on the corruption in the market.
Been in this play nearly two years. The amount i have learned not only about trading in general but the amount of corruption, manipulation, and flat out disrespect from wallstreet torwards retail is jaw dropping. I had no idea the system was this rigged. I contemplated selling at one point early in but then i started thinking that is exactly what they want us to do. If me buying and holding gives us an oppertunity to level the playing field, and get some kind of regulation and fairness in this market then watching my portfolio drop to close to nothing is a chance im more then willing to take. These greedy bastards have been taking advantage of men and women just like me and you since the market established. I will hold until there is change, this is more then a stock and way more then a movie theatre. I support AMC and i will continue to watch my movies at there theatres for as long as i live but i hold this stock for reasons way bigger then keeping them afloat. For those still in this play stay patient, rememeber why we originally got in this, our time is near. ❤️🦍 #AMC #Apenation #HODL #notleaving
AA’s statement don’t do shit for me. All I see is my money being stolen day in and day out with all the corruption taking place with this stock that he’s doing a damn thing to address it while we’re being slaughtered. Fuck that!! No vote of confidence here!
Then get out sell yr shares n shut yr mouth and spread the word have all retail everywhere sell sell sell there is no market if there is no retail that will g the greedy HF then can steal aminast themselves
I vote that your comment is all emotion with no common sense
To ALL the blowhard pole smoking fake APES crying about what Adam Aron is or isnt doing… I have one thing to say… SEE YA!!!
If you pussies couldn’t understand the heat and stress that would ensue upon APE and AMC over this period of time, then this investment isn’t for you…. APES are involved in a military-grade short and distort to the likes of which has never been seen before…. So again, if you funking knuckleheads wanna continue to cry like babies right before you are about to be rich, then just get on with your miserable life… You are doing nothing but hurting others invested in this.. If you wanna be all grown up and make money, the STFU and trust the process… there is so much SOLID EPIC DD out there that anyone crying is either a dumb bitch, a shill, or a bot… Either way, move tf around because you are cramping APES style….. matter of fact, Ill call you all a WAAAAH-BULANCE right now…..
Sorry-not-sorry
Eric Ape Cuttill
AMC APE Long term investor
AA advocate
Critic of adult 👶
Until the massive corruption is stopped in the market…we will continue to lose not only our money, but our entertainment and family ways of life.
Again he didn’t discuss what he is going to do about ape and amc getting shorted to death.he needs to stop being quiet about this to his share holders.we are glad they are making money but what about us retail losing money
You are correct Adam did mention the potential for us to take a loss, but we are getting wiped OUT! Big difference.
Adam Aron King ape could buy back in with 80% of profit from shares he sold and turn this around today. Can you hear the pin hit the floor?
Nothing has changed and I will continue to buy/Hodl. There is massive amounts of FUD all over social media platforms. These shills will make a post and all there shill buddies will respond so if you read it you think everyone is selling. I can’t imagine anyone selling until the fat lady sings.
Buddy, these ‘shills’ have been here since day one. Have some respect.
I really hope Adam Aron actually has a plan for us retail investors. I’d like to think that he doesn’t just tweet one day “I’m retiring” and pass on the catastrophe to some other poor bastard. I’m just gonna keep holding my AMC and APE for now and see what happens. The SEC ought to take responsibility at some point and invoke Rule 304(a)(4), remove AMC across all ATS dark pools, if they want to regain investor trust and confidence. Especially now that more people are learning about the market and understand the corruption and manipulation from market makers, hedge funds, prime brokers and banks who steal from retail investors.
Why were dark pools ever allowed to exist? Why would any order go anywhere but a lit exchange? The only purpose they serve is to cancel out any effect of buying pressure from retail. If all orders for AMC and APE went to lit exchanges both current prices would be much higher. When will the playing field be equal? When will it be free of bias and corrupt control? America is supposed to be a free country, with open and fair markets that anybody can invest in. But if the corruption isnt’t addressed people will start to sell their positions and never invest again. The corruption I’ve seen in 18 months of investing is enough to make me consider never investing in our markets again. Something must be done! Why should the 1% control the markets when they already have so much $ they couldn’t spend it in 10 lifetimes. How much do you greedy sons of bitches need?
Sir, you hit the nail on the head there!!!! The dark pools thing is crazy to me!! Why is there any separation? Just feels like we are on the outside looking in, even scarier is the fact that everyone’s retirement is dependent upon the market. I feel for the people that had planned to retire before joe got in office they lost a bunch and likely still working because of it.
Let’s start a discussion! Leave your thoughts below.
Ok here goes. I feel more and more that wall Street is getting money too easy and acting like it’s just a windfall for them and forgetting who invested in them. Cheery outlooks are great, but too often I’ve seen people in control of company cash in . They still get their salary on top. They just don’t deserve what they get. Like a spoiled child. I really look forward to seeing companies be successful and not just try line their pockets. Peace
I see how the respect is given. Pounced on our goodwill, dedication, and loyalty. After all this suffering to help them. They can choke now.