Many AMC Entertainment (NYSE:AMC) shareholders are still reporting missing the new settlement shares from the company’s latest lawsuit.
A shareholder copied me in an email sent to TDAmeritrade and the SEC regarding the missing settlement.
“I am writing to alert you to the fact that I, along with many other clients, have not received the obligated settlement shares from AMC.
Per the announcement on your own website on August 15:
(Contingent upon the reverse stock split and conversion, AMC will make a settlement payment consisting of one share of Class A common stock owned by settlement-payment recipients as of Aug.24.)
When I called customer service, I was told to give a few more days. That was last week. When I requested a confirmation letter about how many settlement shares I would be receiving, I got a letter showing me how many shares I owned after the RS and conversion. That did not mention the settlement shares.
When I looked at the ticker today, there were over 2M shares available for short sellers to borrow, so why are there not enough shares to deliver the required settlement shares to your customer?”
While majority of AMC shareholders have received their settlement shares, there are still many how have reported not receiving theirs.
Other shareholders using Cash App have also reported missing their AMC settlement shares.
There’s a big concern with how many shares have been available to short the company stock considering the delay on distributing this settlement.
On Wednesday, AMC stock fell more than -36%.
Shares of the movie theatre chain have now fallen more than -75% this year-to-date.
Here are the latest developments.
AMC Has Now Been Removed From the NYSE Threshold Securities List
AMC has now been removed from the NYSE Threshold Securities List after 50 consecutive trading days.
The Securities and Exchange Commission violated the 13-day Threshold Securities List rule which states that a broker-dealer must immediately close out all fail-to-deliver positions by purchasing shares in the open market.
As of Wednesday, there has been no indication of purchasing in the market that would cause a spike in AMC stock, rather the contrary.
Yahoo’s Senior Markets and Data Reporter Jared Blikre says a company joining the NYSE Threshold Securities List is a clear indication of manipulation in the market, primarily through ‘naked short selling’,
In April, AMC CEO Adam Aron announced that the company had contacted both FINRA and the NYSE to look closely at the trading of their stock primarily due to the high number of FTDs.
In August, the CEO released the following update:
“Many of you are incensed by the high number of “Fail to Deliver” AMC shares, and that AMC again has been on the Threshold List for multiple weeks. We repeatedly have gone to the NYSE and FINRA, and did so again in July, to put and keep this entire situation on their radar,” said the CEO on FTDs this month.
The high reportings of FTDs in AMC Entertainment stock suggest an unnatural occurrence of events that all point towards some sort of discrepancy, manipulation or not.
The CEO has said in the past that he has not seen any signs of synthetic shares, with reason too since AMC’s lenders, who are also short on the stock, have rather complicated binding agreements with the CEO.
What do you think is happening with AMC right now? Leave your thoughts below.
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