What's going on moon gang, i hope that you're having a good one, this video is everything you need to know about. The amc share, dilution and what was actually said in the interview between the amc, ceo, adam aaron and jim cramer. I feel that this is important because there's a lot of false information out there before we get into it just so, you know, as i'm filming this, it is friday april 2nd and as of now, amc is trading at 9.36, all right. So what in the world is going on with dilution, so around 10 a.m? On thursday april 1st, there was an interview between jim cramer and the amc, ceo adam aaron, and a little bit after that, reuters actually posted this amc, entertainment to issue 500 million shares.

Ceo tells at cnbc. Well i don't know who this author is with a pretty weird name: reuters staff, definitely a strange name, but this is verifiably wrong. So not only is it verifiably wrong, you might be wondering why is this important at all like? Why does it matter if we issue 500 million new shares well shared illusion is a very big thing. Amc currently has 450 million outstanding shares, as in that's how many shares there are of amc in existence, 450 million.

So if 500 million were to be added to that the demand being the same, if you double up, that means the price gets cut in half, at least in the short term. Remember i am in no way a financial advisor, but to the best of my knowledge in the short term, when you're doubling it up most likely, the price is going to get cut in half, because you're not instantly doubling the demand and for everyone who's mainly watching. This video, because you're curious about an amc short squeeze in the near term. This would make it even more difficult in the long run.

You could argue that, hey with all this new money, they can change the fundamental trajectory of the company to like a more positive path. That is a decent argument, but if you're watching this, i'm assuming you're really really interested in amc and a short squeeze happening sooner. Rather than later um, if they were to drop an extra 500 million shares on us you're, just doubling the supply, and that will make it very very tough. So that's why this is a big deal but, like i said this is verifiably false.

I listen to the interview and actually they're just kind of bringing up news that we already know about and putting it in like a new light. Um, like a little bit later, they did post a new um title amc, entertainment to seek investor approval for 500 million shares sale. This is more accurate, but the damage was already done. I i believe it already.

It spread some fun. Basically, it caused fear, panic doubt and it i i don't know. If they did this maliciously, we don't know i'm not inside the company. I don't know why they did this, but this first one is wrong and i just want to clarify um everything to the best of my ability of what was actually going on so right here.

This is the interview, and just so you know any of these websites and pages and the sec documents i'm talking about. I will link that all below, i'm just going to say that one. So if you want any of this information check the description of this video, but anyway here's the main thing that was going on - and i even noticed on through various forms of social media, that jim cramer caught a little bit of flack in this talk. So this is jim cramer.

This is adam aaron, the um from amc. So here's what happened. It's a short clip, definitely check it out. Do your due diligence fact check me on anything? I say in this video, but the main thing here is that jim cramer is basically like: hey amc has five billion dollars in debt? The stock is relatively pretty high.

Why don't you do a dilution now to take care of that debt um? And that's a fair point and uh you? If you are ever going to do dilution um, you want to do it at the highest price for the stock, because that's how you get the most money, so it's kind of like it has undertones of like hey. This squeeze isn't going to happen. Amc is high. It's about to fall, it had, and i think that's why people were getting mad at uh.

Kramer is just because it's like the connotation of what he was saying. I was like hey the stock, won't be this high, you better! Do it now and get the most money while you can so i understand why he was getting uh, definitely a little bit of flack, but here is what the ceo actually said. Uh mr aaron basically said we care about dilution. We are sensitive to delusion issues and that they are asking us the shareholders to vote on if we are going to allow them the ability to do it and i'll touch on that and more in a second.

But i i've actually made a whole video on that. There is on may 4th a amc, stockholder meeting, we're going to be voting on six separate things. If you own amc, you there's a good chance. You've already been asked whether it was a phone call or an email, but i highly recommend that you cast your vote.

There's six different things, and this is one of those six proposals, basically um. I the there's a couple of things that i thought were interesting in this interview that weren't in the sec document, so i want to go over those. Basically, he was kind of giving the reasoning of why we should vote yes and just so you know to be completely transparent. I personally voted no.

I already cast my vote so for this proposal. I voted. No, i can't tell you how to vote. I just recommend you look into it yourself, but he was giving reasoning of why.

So, basically, if we vote yes with those extra shares, they would have the ability to buy back debt at a discount. Uh handle some deferred, theater, rent payments and then possibly even look into some mergers and acquisitions. Those were three new things that i didn't see anywhere in the sec document. Once again, i made a whole video on that, but uh we could actually just hop into that now.

So right here uh, if you own amc, you can vote so we know it's on may 4th and i think that's why this article from reuters was even just like more offensive, because we knew this wasn't happening like they purposely put something out there. Well, it was either purposely or they they have no clue what they're talking about, because, first of all, the vote's not even until may 4th uh it's a month away from the time that i'm actually filming this video and then even on this. If the vote, if the majority, if there's quorum and if there's a majority that votes yes right here, key takeaway have the authority to issue 500 million shares. So, even if the vote is yes that doesn't automatically mean dilution, there's a big thing between authorization and the actual issuance.

So this is just to give them the authority and then it's up to them. They don't have. They could do none of it all of it. Somewhere in the middle, it's just giving them the power to do it.

So this this is just it's just so comically wrong. First of all, no you can't do it we're gon na vote in a month and then even from there it does it's not a guaranteed thing but uh. I just listed those three definitely check this out. I will link it below.

You can read all these six proposals. This is proposal, one um, the three things that i talked about when he was talking about the benefits none of that was in here. I just want to go over this. The issuance of common stock will provide desirable flexibility in connection with potential financings and other corporate transactions.

So basically, that's a lot of fancy words to say nothing. Super super vague of hey we're a business, and we need money to do business things and in fact the only specific thing they were talking about was delaying or preventing a change in control of the company. Our board, however, does not intend to view the certificate of amendment as an anti-takeover measure, nor does it contemplate its use in this manner at any time in the foreseeable future, and it's not aware of any attempt to plan to obtain control of the company. So in this they pitched it as an anti-takeover thing.

Just so they like could fight against someone, but they also had really no idea of like they didn't think that anyone was trying to take them over. So that's a different reasoning and then we have the three other reasons from the ceo and just to like remind you of those. It was buy back debt at a very, very cheap rate, take on some deferred theater payments that they owe and then potential merger or acquisition. So and then, if you add in what we read from the sec filing, that's the fourth thing of just like um, a hostile takeover of like being able to battle that.

So those are the four reasons that they're giving us of why we should vote yes, um for me, i'm very, very interested more so in this amc squeeze taking on these hedge funds - and i just know with that ability - that's one step closer to making it a More difficult battle for us so that that's why i voted for it uh. Obviously you have to vote in your own way. I just wanted to get across some of the information that's actually going on, because there's clearly a lot of false information out there. So with all that being said, i have one final and very, very important thing, for you is an update on the current amc short interest uh.

So just so, you know like we talked about as of now, amc has 450 million shares out in the world. The free float as in the amount of shares that people like you and i can trade is around 400 million and, as of thursday april 1st uh, the on loan short shares were 116 million. So what does on loan mean basically to take a short position. You have to borrow the shares from someone right now.

There are 116 million shares of amc being loaned, which means that theoretically, up to that amount could be shorted right now, um, but just because you loaned it doesn't mean you actually have to take a short position. But most of the time you do it's pretty close um. So the estimated short interest when you take that into account is now 18, which, in the world of the stock market, is pretty high and in terms of utilization, which is basically just the ratio between all the shares that someone is willing to lend out and then Uh, how many are actually uh being lent out and loaned is 85, which is very, very high, so out of the entire pool of saying hey like we will loan these out, so you can short it 85 of that pool is uh being shorted right now or At least on loan, so we can assume it's close to being short like it, pretty close to 100 of that will be shorted, but it's not definitive so right now, overall, these numbers are very high. It's actually very similar with gma i'll make sure to make an update video later this weekend about that.

But that's the situation that we had tons of false information about the amc interview with jim cramer. I understood why he got flack and it's probably a pretty good reason actually why he later that day so, like i said it came out at 10, the news was breaking at like 10, 15, 10, 30. um. Honestly, what i saw on twitter, he was getting lit up, and then he came out with this insanely positive article.

This was written by jim cramer in the mid-afternoon um. It's actually pretty funny. Adam aaron deserves the title houdini and then, like two paragraphs later adam aaron's, a genius so like right away, he's trying to be super super bullish, and it's like indirect, i guess confrontation with what he was saying were of like hey, like just his tones in the First, interview were like hey: you got to do the dilution now because, like this is the best time to raise money, as in i.e like he thinks it's about to go down, but anyway here's what he wrote. If you don't know adam he's the turnaround ceo, who has rescued the movie, theater giant amc from bankruptcy five times since the world went belly up.

I can't say that because of youtube and he's about to do it. For the sixth and i believe, final time, because he's asking shareholders to prove an additional 500 million shares and judging by the relatively muted reaction to the stock, i don't know how much i agree with that, because, as of thursday, amc did drop 8.33 percent. But anyway, he can sell every share and curious companies, five billion in debt, while growing the company buying competitors and become the last man standing in his field. So clear contradiction there and i think um.

He. He didn't like some of the blowback. He was getting on social media and i think he has two audiences that he's trying to really um, let's say impress, so he has his core audience from like his hedge fund, his mad money days that has been watching him and now there's this whole new type Of trader that got brought into the stock market because of the whole amc gme deal over the past couple months and really just training over the past year, because a lot of us have just been stuck in our houses and apartments and not doing much. So i think he's trying to like in a certain way pander to this new audience and also pander to his older audience.

So i think, that's why, like we're almost seeing this weird dichotomy, um some of these things, though, like he he's talking in multiple years down the road of how amc, can be the strongest business and continue to grow. So i think they're looking at it as a different time frame, both obviously the ceo and jim cramer - well we're all interested in a short squeeze happening asap. So, in my opinion, that's kind of what's going on, but overall, the key takeaway of this video, the short interest for amc is still very high and the earliest the dilution could really even possibly happen. Is past.

May that's initially where the vote is so don't let any of this false information like fool you or get your hopes down um to the best of my knowledge, this is the current state of what's going on with amc um as a quick reminder, don't forget to Join up with the moon gig by hitting the subscribe button, if you want to stay up to date with, what's going on in the stock market, gamestop amc tesla all these other stocks that we talk about on monday to friday. I do live streams when the market's open, so uh become a member of the moon game by hitting the subscribe button. If you don't want to miss any of the new pieces of content, go over that bell, icon click on it and switch it to always, and also don't forget that if you want this trading platform on the screen for absolutely free and on top of that two Free stocks check out the link to weeble in the description of this video you'll get one free stock for signing up another free stock for depositing 100 and, as i said, you'll get this trading platform for absolutely free. So i would highly recommend checking it out because it's a win-win until i catch you next time from me, duck shirt and share best of luck in the markets.

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