The recently new and approved AMC proposals have been denied by a judge in court according to an 8-K filing.
“Unless and until the Court lifts the Status Quo Order, the Company will not proceed with filing the amendment to the Company’s certificate of incorporation to effect the share increase and the reverse stock split previously approved by stockholders or the conversion of AMC Preferred Equity Units (APEs) into Class A common stock.
Nor will the Company make the litigation settlement payment in Class A common stock contemplated by the term sheet at this time.”
Simply put that for the time being, AMC Entertainment (NYSE:AMC) stock will not be going through a 1-for-10 reverse stock split or converting with APE (NYSE:APE).
The plaintiff will no longer be receiving the settlement (shares) originally brought to the table either, at least until further notice.
A preliminary injunction hearing date previously set for 4/27 is still on at this point.
“We could be seeing an indication that the judge wanted the timeline to more fully run its course vs. rushing the conversion process”, said Wall Street analyst Eric Wold.
Related: Webull Reports AMC Hard to Borrow with Whopping Fee
Latest AMC Stock News
The latest AMC news has shareholders confused on how the lawsuit will affect their investment, as if the manipulation of the stock wasn’t already enough.
For the time being, the lawsuit is in a ‘null’ state — as if the proposals that have been denied were never even proposed to begin with.
CEO Adam Aron has yet to address the update on AMC’s latest lawsuit.
One of the latest updates from the CEO has been that of strange reportings in AMC stock.
There were recent discrepancies in AMC’s market cap across various platforms such as MarketWatch, Robinhood, and Benzinga.
The CEO cursed mainstream media outlets stating many data sources were under review for accuracy.
AMC Entertainment stock is up more than +19% on Thursday after the update that the motion was denied and is up more than +23% this year-to-date.
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About The Author
Thought the denial is to not allow AMC to get quicker conversion and RS process prior to court date. Also, not to pay plaintiff for outside court settlement with 1 share for every 7.5 shares of AMC stock. Judge saw no good cause to lift the order.
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