AMC Entertainment Holdings Inc (AMC)

[Prudent Capitalist]

Incorrect! Every pre-conversion holder of AMC common shares prior to the conversion will get the additional common shares ( 1 new AMC common share for every 7.5 AMC common shares held prior to the conversion of APE into AMC common). The $100 Million in new issued common shares will result in significant dilution (around 14%) prior to the planned sale of additional post-RS common shares to raise capital and pay down debt. Expect AMC/APE combined to be trading in the $4 -$5 range by conversion and RS, and to fall back into the mid-high $30's post-RS with the additional immediate dilution. But, time will tell.

The settlement, announced by lawyers representing the stockholder group, will grant holders of AMC common stock one share of common stock for every 7.5 shares held following a reverse stock split carried out in connection with a planned conversion of preferred share units, called APEs, into common stock. Any fractional shares owed will be paid in cash.

By providing meaningful consideration to common stockholders in exchange for the conversion and reverse split, the settlement will preserve over $100 million of common stockholders' stake in the company. The settlement also will allow AMC to proceed with its recapitalization, which was designed to afford the company additional flexibility in paying down its debt, providing an important runway for the chain to manage its financial obligations in the long and short term.

The settlement consideration, comprising approximately 6.9 million post-reverse split shares, will be distributed to pre-conversion holders of AMC common stock. While the value of those shares at issuance will depend on market prices, their aggregate value is expected to exceed $100 million based on recent trading prices of AMC equity.

***ONLY** Allegany-County gets AMC "settlement payment", not **US** Apes?:

Oh boy it hurts reading Apes on Twitter and Reddit thinking this "settlement" applies to all of us?