Is AMC a meme stock?

Shares of AMC are down 11.5% in premarket trades Thursday. The APEs are down 5.8%. The movie-theater chain has been on a roller-coaster ride over the past few years that took it from beleaguered pandemic victim to meme-stock phenomenon.

Why did AMC convert its preferred equity shares into AMC common stock?

The APE conversion is AMC's move to convert its preferred equity shares into AMC common stock. APE stands for AMC Preferred Equity. The reverse split and APE conversion are two parts of AMC's plan to raise equity capital and reduce debt. The company has said these are necessary actions to avoid bankruptcy. AMC established APE shares in 2022.

What were the perks of ape shares vs AMC shares?

APE shares, however, did not have those perks. They had the same voting and economic rights as AMC common shares. Importantly, APEs were also convertible to AMC shares on a 1-to-1 basis. The creation of APEs laid the groundwork for AMC to access capital funding, without technically diluting its common shares.

Why did AMC create ape shares in 2022?

AMC established APE shares in 2022. Typically, preferred equity has seniority over common equity with respect to dividends and in bankruptcy payouts. APE shares, however, did not have those perks. They had the same voting and economic rights as AMC common shares. Importantly, APEs were also convertible to AMC shares on a 1-to-1 basis.