(RTTNews) – AMC Entertainment Holdings Inc. (AMC) on Tuesday revealed that it will not seek approval from shareholders to increased its outstanding stock.
The company had earlier planned to seek approval from shareholders to issue up to 25 million more shares. However, in an SEC filing on Tuesday, AMC Entertainment announced that it has determined not to seek stockholder approval for the proposal to issue 25 million more shares, which will increase its total outstanding stock to 549.2 million shares.
The company said the proposal has been withdrawn from the agenda for its upcoming annual meeting of stockholders.
Chief Executive Officer Adam Aron also announced the news on Twitter, saying: “It’s no secret I think shareholders should authorize 25 million more AMC shares. But what YOU think is important to us. Many yes, many no. AMC does not want to proceed with such a split. So, we’re cancelling the July vote on more shares. And no more such requests in 2021.”
Since last couple of months, AMC has been on a dream run. The stock is up nearly 2,400% year-to-date. This is indeed a miracle considering the fact that the theater chain was on the brink of bankruptcy last year affected largely by the coronavirus pandemic. Wall Street investors had bet on the stock to implode, however, the stock has been rallying on strong support from retail traders who use use platforms like Reddit for their stock picks.
AMC is currently trading at $52.51, up $0.55 or 1.06%, on the NYSE.