AMC Ent announced last Thursday they plan on issuing a dividend to all retail investors and all shareholders in the form of preferred shares to all investors.
They plan on issuing this ‘Dividend’ to all shareholders in the form of equity units under the Ticker symbol APE on the NYSE.
The AMC Apes have been waiting for something as amazing as this for some time now, and the question now is, will this be what it takes to finally squeeze the shorts out of their positions, and the bigger question is… How will this take place?
APE Shares Explained
- This is not dilution because it is a different ticker symbol than the normal Class A common stock $AMC.
- $APE will be a Preferred Stock: Preferred stock is a component of share capital that may have any combination of features not possessed by common stock, including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument.
- CEO Adam Aron said that although he does not see any reason to think there are synthetic shares / Naked Shorts but through this IF something like that was to be the case it would be exposed.
- Dividend ratio is 1:1 which means if you own 100 shares of $AMC you will get 100 shares of #APE.
- The price of $AMC Stock will likely drop in order to fulfill the preferred shares.
With all the recent excitement around the new AMC Stock $APE Dividend coming, there are still many concerns regarding this new preferred stock.
The $APE dividend should be delivered to share holders broker accounts in the up-and-coming days but and you should know by now, AMC Stock Shareholders will be included in the Preferred share ‘Dividend ‘coming soon. BUT There has been a lot of confusion around this new ‘Dividend’ that Aron announced on Q2 Earnings day, and for good reason. Most stock market investors are only aware of what a ‘normal’ dividend tends to be.
In a statement from the brokerage Fidelity said: “AMC announced a special dividend of 1 AMC Pf. Equity unit (symbol APE) for each share of AMC common stock outstanding at close of business on Aug. 15. The dividend is expected to be paid at the close of business on Aug. 19. This is not a cash dividend.“
There is also a huge controversy about AMC Stock and Synthetic shares ect. There is no way to know what is truly going on in this regard, but the AMC Stock shareholders are convinced that there are nefarious things going on behind the scenes to suppress the share price of the stock.