YouTuber Gets Clobbered On Twitter For Suggesting To Sell AMC Preferred Equity
The latest tea in the APE community has seen YouTube stock and crypto vlogger Matt Kohrs clobbered on Twitter after his recent post did not sit well with AMC Entertainment Holdings, Inc. (NYSE: AMC) investors.
Pertaining to the recently announced brand new securities class AMC Preferred Equity or APE, Kohrs asked if it was “smarter to sell all APE and double down on AMC [shares]” instead.
The question comes from the nature of the new security: APE will be distributed like a dividend where each share held of the 516,826,595 AMC shares will get one APE. CEO Adam Aron emphasized that this move, while functioning like a 2-for-1 split, will not result in dilution since “new APEs all go and only go to holders of company issued AMC common shares.”
However, since the APEs will also trade on the New York Stock Exchange under the symbol “APE” and is authorized for 5 billion units, the class can still be subject for dilution. Aron himself said that the equity will provide the firm “a currency that can be used in the future to further strengthen [its] balance sheet.”
This compares to the AMC common stock which has reached the maximum authorized number of shares, and was rejected by the shareholders to increase number of shares amid fears of dilution.
Well, he did ask if he was missing something. So, Twitter users were quick to point it out.
The discussion even spilled on to Reddit.
However, he wasn’t alone in his thoughts.
In the end, it seems like the vlogger did just want to “entertain.”
AMC Entertainment last traded at US$25.02 on the NYSE.
Information for this briefing was found via Twitter and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
