Movie theatre memestock king AMC’s share dilution proposal withdrawn amid clear signs Apes wouldn’t support until after the Squeeze is Squoze.
The contentious AMC 25 Million share dilution proposal which was tabled for the investors meeting on 29th July has been withdrawn from the shareholder meeting agenda. In a clear sign that CEO Adam Aron is continuing to listen to the views of the AMC Ape Army, which appeared to overwhelmingly be edging towards a No vote on the company creating the new shares until a squeeze had actually happened.
In an SEC filing made today, AMC said it was scrapping Proposal 1, which is the proxy vote on the share offering.
“Upon review and careful consideration with further discussions with management and its advisors, the company has determined to withdraw proposal 1 from stockholder consideration for the upcoming annual meeting,”AMC Entertainment Spokesperson
The proposed amendment would have allowed the company to further secure its financial future whilst taking advantage of the above $50 share price to raise more cash for potential acquisitions. Aron used his own twitter account to declare “Proposal 1 is hereby officially tabled. There will be no voting before 2022 on more shares” With a simple text image accompanying the post, he simply appealed to the Apes saying “I see you. I hear you. I value you.”
Aron went on to say that voting on the other 4 issues requiring approval at the AGM would continue on schedule, but it’s probably fair to say that Apes will be pleased to see that the AMC 25 million share dilution proposal was, for the time being at least, not an issue, giving the stock much more time to squeeze.
AMC 25 Million Share Dilution and more good news
The good news is just the latest from the AMC chief, who had spent much of last week, and over the July 4th Weekend releasing positive news, dispelling FUD, promoting new services, Including big screen audiences at the theatre for the highly anticipated Poirier-McGregor UFC fight on the 10th July, new perks for retail investors via it’s AMC Connect program, and a possibility of Pro Sports screenings at some of it’s flagship theatres.
In his second tweet as part of the thread, Aron’s graphic declared “Your Voice Matters” and it’s probably fair to say that the noise of the Apes, who make up around 80% of the float, has been the number 1 factor in the company’s decision that ended with the share dilution proposal withdrawn.
“It’s no secret I think shareholders should authorize 25 million more AMC shares. But what YOU think is important to us. Many yes, many no. AMC does not want to proceed with such a split. So, we’re cancelling the July vote on more shares. And no more such requests in 2021,”Adam Aron, CEO of AMC