AMC Theaters stock sinks as it begins selling "$APE" shares

AMC Theaters is selling a new class of shares today named $APE "in a nod" to the hapless financial lemmings to which it will be sold. AMC Theaters's stock is plunging today, down 38% at the time of posting, even as the company's CEO boasted that "It takes survival risk off the table in the near term. So we can raise cash if we need it. That is good for our shareholders."

A single APE unit will be granted for each common share, meaning that about 517 million shares of this new stock will be formed. AMC stock fell more than 34% in early trading on Monday. … "The other thing it lets us do is raise capital to grow, raise capital for M&A activity, and raise capital to pay down debt," [CEO Adam] Aron said. "These are all good things for AMC. That, combined with an improving box office, a recovery from the horrible pandemic of 2020 and early 2021, these are good days for AMC."

Competitor Cineworld's exit from the mortal coil is unfolding the old-fashioned way, via bankruptcy.