AMC CEO Adam Aron now says he feels investor’s pain following the stocks decline over the past two years, stating “I understand that it hurts”.
AMC stock is currently trading at $3.96 at the time of this writing and has fallen more than 25% in the past year.
Investor value took a massive hit during the introduction of APE.
APE served as a liquidity tool to supply the movie theatre chain with the capital necessary to pay down its debt and raise cash for the business.
A 1-for-10 reverse stock split in 2023 further fueled dilution, affecting shareholders till this day.
“AMC must be in a position to raise equity capital.
I repeat, to protect AMC’s shareholder value over the long term, we MUST be able to raise equity capital,” CEO Adam Aron said at the time.
“That is especially the case now with the added uncertainty caused by the writers and actors strikes, which could delay the release of movies currently scheduled for 2024 and 2025.
If we are unable to raise equity capital, the risk materially increases of AMC conceivably running out of cash in 2024 or 2025, or of AMC being unable to satisfactorily refinance and stretch out the maturity of some of our debt (which is required of us beginning as early as 2024.)”
Aron has faced criticism from a divided group of investors for the dilution, even reprimanding the CEO’s salary increase over the years.
Adam Aron was paid $25.4 million in 2023, which was a 7.2% increase from 2022:
- 2023: $25.4 million
- 2022: $23.7 million
- 2021: $18.9 million
On Tuesday, the CEO took it to X to share his pain with shareholders on the stock’s underperformance over the past few years.
“I believe I remain AMC’s largest retail investor.
I own 722,820 AMC shares and will vest in 1.2 million more AMC shares within 26 months (many by March ‘25).
So, I certainly feel and share in your pain as AMC’s share price has fallen in 2023 and 2024.
I understand that it hurts,” the CEO stated.
Investors have flooded the comment section, raising questions on how to fix this problem.
“Why don’t you buy some with your own cash,” says one user.
But many have shared their rancor after failing to pull their money out despite all the warning signs*.
While the CEO might also be experiencing pain from the drop in share price, you cannot compare it to the shareholders with families who’ve lost nearly everything.
Arrogance or naiveness set aside, investors now want solutions.
Don’t let this loss hold you back from making money in the future.
Franknez.com has shared many incredible opportunities with millions of readers in both the stock and crypto markets over the past years.
It’s time you take back your control.
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Also Read: Wall Street’s Vendetta Against AMC Is Keeping Its Shares Below Cinemark’s
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