AMC Stock investors are anxiously awaiting on their soon to be $APE Dividends which are arriving in just a few days.
AMC’s CEO Adam Aron announced during Q2 earnings that AMC shareholders will receive a preferred share called $APE!
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 symbol $APE. The 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!?
With this massive news for AMC investors, you can only imagine how much FUD has been spreading in the recent days. News of the Dividend for shareholders have had media outlets and other online personality run with FUD like crazy.
Adam Aron CEO of AMC ENT. took to twitter Saturday afternoon to clear up some misinformation when it comes to the news around the New $APE Dividend Shares that will be in AMC Shareholder’s broker accounts soon enough.
CEO Adam Aron took to twitter to try and clear up some FUD on dilution, which to be fair has been on the top of mind of AMC Apes since the start of this news. Aron clears up that he and AMC have investors best interest in mind, and to not get distracted.
WHO ALL GETS $APE SHARES?
When it comes to the AMC $APE dividends, who receives them is actually pretty simple. If you own 1 share of AMC Stock you will get 1 share of $APE. If you own 1,000 Shares of AMC Stock you will get 1,000 Shares of APE (It is a 1:1). But remember that APE stock is not a cash dividend like most other dividends across the market.
DOES YOUR STOCK BROKER ALLOW $APE?
As 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.
There also has been a lot of questions as to what the Apes or AMC Stock holders will be forced to do to receive this so called “APE” Shares.
Fidelity Investments (One of the largest stock brokers) came to twitter to clear a few things up.
HOW MUCH WILL $APE TRADE FOR?
There has been a lot of FUD around how much each share of $APE is going to be trading for, and how much APE will be worth. This is a fair question since the shareholders are eagerly awaiting to have these share join their portfolios.
CEO Adam Aron said in a tweet: “More FUD work. Ultimately, market trading determines the ongoing prices of AMC shares and APE units. They are very similar in nature, so logic says that initially the AMC share should approximately trade for 50% and the APE unit 50% of where shares trade just before the dividend.”
To put things simply, it sounds like if AMC Stock is trading at $20 per share, $APE could open at $10 each (Which would also lower the share price of AMC Stock 50%)