$AMC Entertainment(AMC)$ rose over 60% in the Post-Market Quotes. The reason is that the company's application to convert APE preferred shares into common shares was rejected by a Delaware judge. The development is seen as a huge and unexpected victory for retail investors whose stakes would be diluted if the application is approved.
Luckly, i’ve got some position and see decent return so far. I would like to dig how far the price would go..
The company and investors leading the lawsuit filed a new version of the nine-figure settlement over the weekend in Delaware’s Chancery Court, seeking to address problems identified by Judge Morgan Zurn, who concluded last Friday the original deal waived too many claims against the company, according to people familiar with the filing. The filing won’t be publicly available until Monday, the people said.
The ruling stunned some investors and analysts, who expected Zurn to sign off on the class-action settlement. Shares of $AMC Entertainment(AMC)$ ’s common stock surged about 100% at one point in after-hours trading, while $AMC Entertainment(AMC)$ Preferred Equity units, or APEs, fell as much as 63%. The settlement’s precise value, which is upwards of $100 million, has fluctuated with the company’s stock price.
The settlement’s backers want Zurn to weigh the new version of the deal without seeking additional comment from $AMC Entertainment(AMC)$ shareholders, the people said. More than 2,800 investors in the so-called “meme stock” wrote to Zurn opposing the deal prior to her ruling.
$AMC Entertainment(AMC)$ Chief Executive Officer Adam Aron announced the revised settlement in an open letter to investors Sunday, emphasizing the “critical” importance of getting the deal approved and the $AMC Entertainment Preferred(APE)$ s converted so the company can raise new equity capital. “The risk of financial collapse is not whimsical,” Aron wrote in the letter, posted on Twitter. “That is especially the case now with the added uncertainty caused by the writers and actors strikes.”
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The CEO of AMC released a letter to investors pleading for them to allow the company to sell more common shares of stock. Notably, he sold $42,116,000 of AMC over the last 20 months and has not bought a single share in any of the equity raises.
Share your target price $AMC院线(AMC)$
Volume will be north of 100 million tomorrow. I think it closes over 10.
I anticipate great price action and a quick profit.
I will take a risky trade with a limit order at 7.45 where AMC will be above its POC line as an sign of a potential resurgence of bullish momentum.
Are there short sellers now buying to cover to cut their losses?