AMC Will Now Distribute a New 13% Cash Dividend

Market News Daily - AMC Will Now Distribute a New $13 Cash Dividend.
Market News Daily – AMC Will Now Distribute a New 13% Cash Dividend.

AMC Entertainment (NYSE:AMC) will now distribute a new 13% cash dividend to investors for every share they hold — part of its settlement obligations.

Under the settlement, AMC will provide stock worth an estimated $129 million to common shareholders to settle the legal claims related to its stock conversion plan.

The company announced that it will distribute approximately 0.133333 AMC Class A Common Shares per every AMC share held with the record date being Thursday August 24 and the payable date being Monday August 28.

AMC Entertainment will also be effecting a 1-for-10 reverse stock split on Thursday August 24.

It’s important to note that AMC’s new 13% cash dividend is a one-time distribution and should not be mistaken for a traditional and recurring cash dividend as offered by other companies quarterly or annually.

Note: 7.5 * .1333 = .99975 | The dividend is a 13.33 PERCENT DIVIDEND. You get 1 share for every 7.5.

“This is a reminder about the upcoming AMC dividend distribution.

  • Payment amount per share $13.3333 PCT (Percentage)
  • Payment date August 28, 2023
  • Record date August 24, 2023
  • Ex-dividend date August 23, 2023

You will receive the dividend payment if you hold AMC prior to the ex-dividend date and do not sell AMC until on or after the ex-dividend date.

Regular cash dividends will be reflected in your account on the payment date. Stock dividends and dividend reinvestments can take up to five business day,” the company said in an email to shareholders.

Short interest for $APE has risen +50% in the past month indicating a major interest for short sellers.

Common stock also continues to be heavily shorted with cost to borrow rising as high as +1,000%.

On Tuesday, AMC stock fell more than -20% while share of APE fell more than -14%.

Investors are expressing concerns on social media as the company continues to take a hit.

Also Read: AMC Speaks on Short Sellers Covering Prior to New Conversion

AMC CEO Speaks on Short Thesis in New Letter

Market News Daily - AMC Will Now Distribute a New $13 Cash Dividend.
Market News Daily – AMC Will Now Distribute a New $13 Cash Dividend.

In late July, AMC CEO Adam Aron released a statement on his thoughts relating to the short thesis in AMC Entertainment.

“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.

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.)

The risk of financial collapse is not whimsical. Cineworld/Regal, the second largest movie theatre chain in the world, fell into bankruptcy and their equity holders were essentially wiped out. Bed, Bath and Beyond which was viewed as the third most watched meme stock, also fell into bankruptcy and their equity holders also were essentially wiped out.

Fortunately, at AMC, we have been much smarter, much more agile and much more skillful. We have risen to every Covid challenge heretofore, and I have every confidence in our continued ability to successfully navigate through these complicated times,” Adam Aron said in his letter.

The best way to eliminate the Wall Street short thesis according Adam Aron is by successfully growing the company’s fundamentals.

“AMC Entertainment must put ourselves in a position to be able to raise equity capital.

That is what will make it more likely that first we survive and then that we thrive. Indeed, over the last several years, there has been an enormous short share position in AMC stock.

In my view, the wisest way to defeat that short thesis is to take bankruptcy risk off the table, to the extent possible.

And we do that by AMC being able to raise equity if, as and when needed.”

Also Read: Two Institutional Investors Have Now Increased Positions in AMC

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Market News Today - AMC Will Now Distribute a New $13 Cash Dividend.
Market News Today – AMC Will Now Distribute a New $13 PCT Cash Dividend. AMC 13% cash dividend.

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18 Comments

  1. OneReason1Purpose

    Sure you did. FudBots don’t own stock.

  2. Mike Rogers

    No divi for APE. Sec filings show 1/100th AMC/ape. Idk.

  3. Larry

    Lets do the math after the APE conversion to AMC. 1/7.5=0.1333×100=13.333%.

  4. Garry

    I have a question. I currently have 1600 ape shares. Is the 1share for every 7.5 ape shares going to reflect / count before or after the 1:10 rs. Basically is it for 1600 or 160 ape shares? And is it the same as this 13% “dividend”?

    • Apenofightape

      You will have 160 AMC shares after the conversion/reverse split/dividend. You won’t get the dividend. If you had 750 AMC shares before the rs, you would have 85 AMC shares after everything. 750 / 10 = 75 + (75 / 7.5) = 85

  5. Dwaine Cantillo

    Screw amc, AA, hedges and sec. They all cricked. I sold everything as soon as the bitch ok the rs.

  6. Tammie Hertz

    Where are you getting this information? Schwab said they do not see any information regarding a dividend distribution.

    • Frank Nez

      The screenshots by Schwab and TD Ameritrade were submitted by several shareholders.

  7. ConfusedBull

    Is it really $13 per share CASH? …”new $13 cash dividend to investors for every share they hold “…..So, if I own 1,000 shares, is AMC really going to pay me a cash dividend of $13,000? That sounds way too good to be true. I assume I am misunderstanding something. Any clarification would be appreciated.

    • Frank Nez

      I explained it in the article: Note: 7.5 * .1333 = .99975 | The dividend is a 13.33 PERCENT DIVIDEND. You get 1 share for every 7.5.

      It’s not a traditional dividend, it’s one like APE. $13.33 PCT stands for percentage, not dollar amount. I know only a few caught this. I revised the article to reflect this to clarify.

      • Julie

        So it’s not literally a CASH dividend, it’s just additional AMC shares?

    • CS

      Here’s the conversion info
      Lets do the math after the APE conversion to AMC. 1/7.5=0.1333×100=13.333%.

  8. Cindy L. Pillow

    Will it happen with the current shares I have now, or when it’s cut down with the split?

  9. HOWARD SELCER

    The manipulation of AMC stock in the last 3-5 days is fucking unbelievable!!! Share activity of over 100 million shares and the stock loses 24%??? The corruption and manipulation is astonishing.

    • Roger Viles Romero

      We KNOW

    • T.

      Seems AA and shorts are stealing all our money and anyone in charge of policing this fiasco just sits by and whistles

  10. Frank Nez

    Leave your thoughts below.

    • Peter Boncelet

      What a crock. 13% of $12/share is ALOT cheaper than 13% of $40/share. Who do you think drove down that price????

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