AMC Entertainment Stock Conversion Raised $325 Million, CEO Says

The conversion of AMC Preferred Equity shares to common stock has paid off big for the theater chain, according to the company’s CEO. Adam Aron said Wednesday that since converting them into 40 million shares, AMC Entertainment has raised $325 million of new equity capital.

The shares have an average value of approximately $8.14 per, the company said in a separate statement. Following the announcement, AMC Entertainment’s share price saw a slight bump to $8.24 per share in after hours trading.

“This material increase to our cash position means that any talk of immediate and imminent financial collapse right now by AMC is moot,” Aron said about the conversion, which was approved by a Delaware judge in August. “We still have many challenges, including Hollywood must resolve the current actors and writers strikes. But regardless, AMC is now a much stronger company given our increased level of cash.”

Aron said because of the stock conversion, which included a reverse stock split, he now has more than 800,000 shares of AMC instead of the more than 8 million he had in shares and APE unites before.

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