Will AMC Stock Squeeze? || BIG Changes Incoming!
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Let's go over the recent AMC slash Ape developments: Form 8K It was filed on the 25th a few days ago just before the weekend and here's what you need to know. All right. AMC preferred Equity units is constituting a depository share of 1 100th. We know that Ape is a spin-off of the preferred Equity shares.

One preferred share was made into a hundred units and that's what Ape is and AMC Preferred Equity unit. That's what they tell us Ape is indicative of. So on January 25th, 2023 AMC entered into an amendment to the credit agreement. The 12th Amendment extends the fixed date of the termination of the Covenant suspension period for one additional year to March 31st 2024.

That's good. Basically, they're just getting a more favorable debt interest payment situation. The 12th Amendment was to the credit agreement dated April 30th 2013 with the lenders from time to time party there of William in so it's Wilmington Savings fund Society We don't have to get into like all of the specifics of this, but what you need to know in their current debt and debt payment situation: They Kick the Can down the road a little bit more and this is positive that that is very fairly. Uh, just a good business move is to get more of a favorable debt situation.

It looks like they did it with a bank slash lender that's they've been with. Seems like over actually a decade. Pretty favorable. So um, the Tldr on this.

Feel free to check this out. You can search this 8K it is on their website if you want to read more into it. Uh, not the biggest breaking news, but I would say it is a bit more positive. more of the news of that people are talking about.

So a Schedule 14a and where is the exact date on this? this is the preliminary proxy statement which is important for the upcoming vote. Uh, so what we need to dive into is all this because it is, probably uh, pretty important. So if you are a stockholder uh of AMC there's a special meeting to be held on March March 14th at 11 A.M So once again, March 14th, 11 A.M Central Time So if you're on the East Coast if you're just dealing with the stock market, I believe that will be around noon o'clock So during the lunch hour, the purpose of the special meeting is to vote on amendments to the company's Uh certificate of incorporation That, together if approved, will enable companies AMC preferred Equity Unit Apes to convert into shares of AMC So basically with the preferred stock, they use that and they created Ape And now they're saying hey, can we push Ape back into AMC So there's a singular ticker representing the company instead of two as a result of an increase the number of authorized shares of common Sock and a reverse split of our common stock. So basically there's going to be a lot more stock.

but also this will simultaneously happen with a reverse split. Which as you're about to see is on a basis of ten to one. So yep, big merger and I Know this gets a little bit funky because I'm sometimes maybe you're thinking about it in your Share account, but think about what it really is in terms of value of the company. So right now AMC as a company is split between AMC and Ape, what they're attempting to do here is basically say hey, since they both represent the same legal and financial claim to the company, let's just merge it back together as one.
Which another way, if you're a little bit more pessimistic, you can interpret that to really mean basically Ape was kind of a failure in what it was meant to do. So back in August of 2022, it made its debut and obviously the legal and financial claim to the company that is AMC was split between AMC and Ape and ever since then, uh, they've never traded at a parody. That's interesting because as I just mentioned, they have the same legal and financial claim to the company so you would expect them to trade at very close prices and right now they're off by about 275 which is a very widespread and we'll talk about this in a little bit. but that Delta that difference is right now.

What's prompting Ape to go up in AMC to come down? Because people are viewing it as an Arbitrage opportunity. Personally, I am not playing the Arbitrage opportunity. but I find it interesting to discuss and I have to admit the people who are playing it, it is a smart move. Obviously it's not without risk it could blow up in their face.

But I understand why they're arbitraging it because they're basically saying hey, based on this SEC filing, we think the vote's going to go through if the vote goes through. That basically says AMC and Ape should be trading at the same price. So obviously they're trying to play the differential between the two prices to rewind back to August This was created with preferred stock and they had 50 million of those. so they basically turned one preferred stock into a hundred.

Apes So it ended up being 5 billion. At one point in time, there was just one billion. They were all authorized because the preferred stock Circa 2013 did not need any of the approval of shareholders. So that's kind of where we were at with it.

and what the real really asking in here what you're about to realize is when they put Ape back into AMC the same control that they have over Ape is what they're looking to have over AMC So what I mean by that is. Prior to this, they had to get shareholder approval for more share authorization for dilution. They had to come to shareholders for the approval. That wasn't necessarily true with the preferred stock which they transported in Ape.

And as you're about to read in this that power that they're looking for where basically they can do what they feel is necessary without shareholder approval, they want to be able to do that with AMC What does that add up to? It adds up to the fact that they want to be able to use these authorized shares and dilute without shareholder approval. in terms of AMC something they can already do in terms of Ape, they're looking to kind of merge that capability the proposals. The company is holding a special meaning for the following purposes as more fully described in the accompanying proxy statement: Proposal Number One: To approve an amendment to our third, amended and restated Certificate of Incorporation to increase the total number of authorized shares of common stock from 524 000 uh to 550 000 shares of common stock. So they are just asking for more authorization Before you could dilute, you first have to get the shares authorized.
That's a normal process to approve an amendment to our certificate of Incorporation to effectuate a reverse stock split at a ratio of one share of common stock for every 10 shares of common stock, which together with the share increased proposal, shall permit the full conversion of all outstanding shares of Series A preferred stock into shares of common stock and collectively with the authorized share increased proposal. So I'm going to read Number three, but you're going to realize that all these they're all happening together or they're all not. That's how this is going to be currently set up. Either you get all three or you're getting none.

That's how the vote is held. It's not like you could have like one in three or one and two, but not the other. They're either all going or they're not. So proposal number three to improve one or more adjournments of the special meaning if necessary to permit further solicitation of proxies if there are not sufficient votes for the time of the special meeting to approve and adopt the charter Amendment Proposals that's nothing special, that's just more legal Bumbo Jumbo that they're looking for they need Quorum they need a majority vote for to be able to do any of this.

So what they're really going for is one and two are the key ones and what they're needing is to merge ape into AMC First they have to get authorization for more shares and then they're gonna merge it and also simultaneously. That's going to happen with a one for ten reverse stock split. Usually stock splits, you end up with more shares at less of a price. but really, your financial investments the same.

In this scenario, you end up with less shares at a higher price. Once again, your financial investment is the same. In a normal stock split scenario, it's equivalent to having a ten dollar bill and let's say it's a 10 for one normal stock split You now have 10 one dollar bills. so you have more bills.

I.E more shares. but you still have ten dollars. In this scenario, it's a reverse stock split. So it's like having ten one dollar bills.

and now you have one ten dollar bill. You have less shares I.E less bills. But you still have ten dollars you shouldn't be focusing hardcore on like what's my share? My Share account. You should look at it as like a total pile of money.
Here is my entire pile of money that might be represented by either more or less shares, obviously multiplied out by the price. But look, if your pile of money is gaining value or losing value, that's the major thing that matters here. I See some confusion with stock splits. reverse stock splits.

In all reality, it's just like a mathematical sleight of hand. It's more of like a kind of an accounting pain in the ass. But if you looked it up on whatever website you trust or whatever AI system you're searching or whatever, stock splits and reverse stock splits do not create or destroy value. the market cap of the company.

Theoretically Remains The Same Now I'm saying theoretically because there are other things to consider. It does have an impact on the affordability or potential not affordability of options. Sometimes there's other changes in the background. There is a psychological thing.

For example, when you go through a normal stock split all of a sudden if people are looking at whatever stock XYZ trading at 100 and then they do a 10 for One reverse split, which once again, there's no value created or destroyed. Psychologically, it seems cheaper at a hundred, or in the reverse if it goes from 10 down to 100 or 100 up to 10. psychologically. even though it's a 10 for one in the first case, a stock split.

the other case, a reverse stock split. No values being created or destroyed. but it seems psychologically cheaper in the first case and more expensive in the second case. So there are psychological implications without a doubt.

And also, it's worthwhile to note that that from a market standpoint, there could be implication in the options Market Because there's some funky things that can go on with premium so we can get into, uh, some of the details. Obviously, if you listen to them, they very much want you to vote Yes on each of these I Want to make something clear? I Believe everyone should come up with their own thoughts and opinions. My goal in covering this and making this a video is just explaining it. Hopefully I can boil things down to their layman terms so you can understand it a little bit more.

You need to vote in the way that you think is appropriate. It's up to you. it is 100 up to you. It's your money on the line I Know which way I'm gonna vote and I'm gonna vote in the way that I think is best for my investment in the company.

You should vote the way that you think is the best investment for your money in the company. But anyway, Proposal one: They need more approved shares because of the putting eight back into it. Obviously you have to increase the Share account and then from there they don't want to have like that many shares. so they're going to end up doing a 10 for One reverse split.

Now a lot of the times they do with reverse stock split. a lot of the times you see this on the NASDAQ exchange where company Falls below really outside the parameters of what you need to have to be listed and one of those parameters on the NASDAQ And please understand the New York Stock Exchange is different. That's the Nyic. It's a different exchange but on the NASDAQ it becomes really complicated.
If you fall below a dollar, there's a chance you could get delisted. So a lot of the times reverse stock splits leave a negative taste in your mouth because the company is going down down, down and they've fallen so far that they might get delisted. So they do a reverse stock split. So even though the market value of the company stays the same, the price goes back up so they can stay listed on the NASDAQ.

So if you were to look at it just historically, across all reverse dot splits, it's not a good situation. This one's a little bit different though. They're not doing a reverse stock split to avoid getting delisted, they're doing it to get it the mass amount of shares kind of under control after merging a back into AMC. In this, like the Re I mean you could read it right here: A reverse stock split of the common stock at a ratio of one share of common stock for every 10 shares of common stock.

So they want to put everything into common stock and then it would be a 10 for One reverse split. So basically how many ever shares you own, you would divide that by 10 or multiply it by 0.1 So if you have a thousand shares, you would now only have a hundred. But it doesn't end there because theoretically the price would also 10x. So once again, back to what I was saying about that pile of money.

Your pile of money is still the same. It's just you have less amount of bills I.E less shares at a higher value? That's it. So it's a mathematical sleight of hand, but the end result is in a theoretical sense the same. I Can't call it out in reality because it hasn't happened.

We're going to find out really how the market thinks of this. Your vote is important regardless of the number of shares that comes sock and or series A preferred stock or Apes representing such as shares of series A prefer stock that you own. So basically they're saying yes, uh, they want everyone to vote and you should vote I'm of the opinion that you should 100 vote if you want to uh I Hope that this discussion may be cleared up. some of your questions of what means what and what doesn't mean what and some of the math behind it I implore everyone before you cash your vote to read through this thoroughly.

I Think One of the biggest issues I'm seeing is that people are kind of just reading random things on something like Reddit or Twitter and then they're casting their vote and nothing about that. It's just don't stop there take in the thoughts and opinions of many people. cast a Y net but also you should take the time to go through all this like yourself. The final thing that I want to wrap this up with is right here.
in order to affect the conversion of Apes into common stock, shareholders must approve both the share increased proposal and in the reverse stock split. So one in two of the proposals It's All or Nothing type of a situation The increased proposal loan will not create sufficient authorized common stock without the reverse split proposal to enable the conversion to occur. Nor will the reverse split proposal alone satisfy the terms of the series A preferred stock to enable the conversion to occur. so you can't really have one without the other, It just wouldn't make sense.

So for this to really happen? I Guess technically I misspoke before three could happen without the other ones. But the main things that you care about, especially if you're watching this, is that one and two, they're either both happening or neither are happening. You can't have a scenario where it's just one or just two anyway. I Hope you're feeling a little bit more confident in what this all means right now.

So the first part of it is that just a better debt debt payment situation. That's awesome. And for the second one, you just have to know what's going on. Basically, they're taking all the ape which was already at a 1 to 100 ratio from the preferred stocks.

They're gonna do do that, fix that up, and then they're doing a 10 for One Reverse split. Um, if it's all approved and it sounds like the Voting is going to be in mid-march of 2023 I Would love to get your thoughts on it. Which way are you voting? Let me know in a comment below.

28 thoughts on “Will amc stock squeeze? big changes incoming!”
  1. Avataaar/Circle Created with python_avatars Steven Worley says:

    Matt, you and everyone else seems to talk about the value being equal after Rev Split but there seems to be a HUGE loss of opportunity. IF I had wanted to play a game with AMC, I would have bought 100-500 shares. I bought 10,000, so for each $10 rise in value, there is a nice reward. This split seems to be punishing those of us that bought shares time and again in support. Can you or have you spoken about opportunity gained or lost via this split and merge. How does this affect the hedgies that have been manipulating our price? Can this move drive the price through the roof? Does this benefit the hedgies in any way by reducing their obligation? If there is opportunity for this stock to rise, I would much rather not lose 90% of my earning power! Keep up the good work!! Thank you!!

  2. Avataaar/Circle Created with python_avatars stratcatstar says:

    Majority of shareholders (retail) who are in and have been in AMC for the last 2 years will absolutely lose exponential amounts of money in the event of a reverse stock split. On a regular stock fine, on a stock you want and expect to squeeze you are losing significant amounts of money per share

  3. Avataaar/Circle Created with python_avatars Steven Worley says:

    Matt, I have not tuned in lately but am concerned about this merge and reverse split. It seems to me that by reducing shares by 90% would benefit hedgies while robbing me of the opportunity I have held on for for nearly two years. I bought 10K shares at $30 and will now have to make that up with a mere 1000 shares. All the talk seems to be about share price balancing at split. I am a bit concerned at how much longer it will take me to recover. Why would they reclaim 90% of my "dividend"? Thanks for your input on this.

  4. Avataaar/Circle Created with python_avatars Gorilla Trader says:

    I am voting YES. Only because I don't want to give Adam Aron an excuse if the shit hits the fan if we vote no. If AA proposes this and we vote yes, then he is on the hook. I am hoping this is an avenue to offer more shares to pay off their debt which should be a catalyst for a squeeze. If they pay off their debt and the stock continues to underperform and AA does;t go after the shorts he and the board have to go.

  5. Avataaar/Circle Created with python_avatars Paul Stephen says:

    AA needs so much money he will be diluting forever , maybe he needs a salary cut from 18 million to 5 million , I will vote YES to that

  6. Avataaar/Circle Created with python_avatars Paul Stephen says:

    First AA told us APE was a dividend and 90 days later he wants to kill it , we got played

  7. Avataaar/Circle Created with python_avatars Snake Plissken says:

    Voting YES will allow us to pay off debt and make us cash flow positive. Without debt, SHORTS WILL LEAVE.

  8. Avataaar/Circle Created with python_avatars Hola! Tru Litt says:

    Talk is cheap. AA has been sweet-talking us, but what has he actually done? He dumped shares in the middle of an emerging squeeze, killing it. He personally cleared tens of millions of dollars on the backs of retail owners when he sold his AMC shares. What has he given us in return? Nothing but empty talk. Value of AMC stock dropped after introduction of Ape shares. On the eve of T+90 he sold APE on the market for pennies on the dollar, plus announced conversion and 10:1 reverse split. Value dropped even more. What does he care? He's already cleared his millions, for his retirement. He keeps talking about getting rid of debt, but he goes chasing after rabbits in the desert with the purchase of a gold mine (whut?) and defunct theaters. Either he's an incompetent CEO, or he's a scam artist. Think about it. He sold APE shares pennies on the dollar to a HEDGE FUND. This man is not on our side. Vote NO on his proposals — hopefully it's not too late.

  9. Avataaar/Circle Created with python_avatars mikael papafilis says:

    Is reverse split only for ape shares ?

  10. Avataaar/Circle Created with python_avatars Sir Williams says:

    how do you vote?

  11. Avataaar/Circle Created with python_avatars Jovany says:

    why do people keep saying amc is gonna squeeze again? i’ve been hearing this for years

  12. Avataaar/Circle Created with python_avatars JP says:

    My concern is after the RS, they short it back down from its price 10x price point. So I’ll be voting no

  13. Avataaar/Circle Created with python_avatars Mike Wolff says:

    Does anyone truly feel the slightest bit bullish about this? The company split into ape to dilibertly take the voting power out of retails hands. Now they are forcing it back into one share to give the illusion of higher value. Though it seems it sets up for more $ value to make it's way down. We were so close to hitting 0 now we can reset and get shorted back down. Adam Aaron is doing great things for HIS COMPANY. But if you're a share holder doesn't this make you want to run to the hills??

  14. Avataaar/Circle Created with python_avatars Vinson Walton says:

    Squeeze over

  15. Avataaar/Circle Created with python_avatars Ryan beney says:

    Does this greatly reduce the size of the float? I thought most people considered amcs float to large to squeeze after all the dilutions. Doesn't voting yes just make this much easier to squeeze?

  16. Avataaar/Circle Created with python_avatars J P says:

    Ape is a failure to us but not for Adam he shit on us and threw us under the bus.

  17. Avataaar/Circle Created with python_avatars Meeeee says:

    NO !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  18. Avataaar/Circle Created with python_avatars Shine Star says:

    Title mislead

  19. Avataaar/Circle Created with python_avatars jimbr0tv jimbr0tv says:

    this is bs period idc what anyone says they fuck us an take our amc an turn it into ape now we buy more ape becasue they both go down we buy more amc cause of the same thing then now you wanna take our buying oppurtunties away at good prices then slap a reverse split on us taking our shares away so when it runs we wont make millions or hundreds of thousands of dollars but merely pennies an converting out ape to amc thats even more fucked up giving us something an taking it back after the fact now we bought more cause it steadily drops like amc does so we buy more for better oppurtunities but then you wanna take our shares good luck everyone im over this whole market crap all a scam seems like it theses days not like how it used to be

  20. Avataaar/Circle Created with python_avatars dopeboy PIRAT says:

    We are only allowed to sell APE in the EU, why?

  21. Avataaar/Circle Created with python_avatars dopeboy PIRAT says:

    @matt_kohrs why cant we buy ape shares in the EU? Please explain.

  22. Avataaar/Circle Created with python_avatars Garfield Martinez says:

    APE is the bait and switch AA is using to help the Heggies cover. who is buying after hours running up APE from 1.91 to 2.32. the heggies buying in the dark pool, hoping enough APE investors vote for this coversion. with the share they buy, and the APE that vote for this conversion, the SHORTS will be able to cover. APE INVESTORS VOTE NO, NO, NO to this scam that AA is playing.

  23. Avataaar/Circle Created with python_avatars Generalis says:

    No views on the usual tradefluencer videos so need to use AMC for views again?

  24. Avataaar/Circle Created with python_avatars Ron Rodgers says:

    Keep your shares, vote NO!

  25. Avataaar/Circle Created with python_avatars Ron Rodgers says:

    Matt – do you still own any AMC or APE stock? Your explanation is only true if the crooked player don’t drive it lower which everyone knows that will happen. Why are you playing this no change game? Stop wasting people’s time state why you are voting yes!

  26. Avataaar/Circle Created with python_avatars CODY says:

    YES YES YES

  27. Avataaar/Circle Created with python_avatars Garfield Martinez says:

    APE is the bait and switch AA is using to help the Heggies cover. who is buying after hours running up APE from 1.91 to 2.32. the heggies buying in the dark pool, hoping enough APE investors vote for this coversion. with the share they buy, and the APE that vote for this conversion, the SHORTS will be able to cover. APE INVESTORS VOTE NO, NO, NO to this scam that AA is playing.

  28. Avataaar/Circle Created with python_avatars Matt Kohrs says:

    Are you voting Yes or No? I would love to hear your thoughts below!!!

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