In a recent form filed by AMC Entertainment included some information that has the community of retail investors known as the apes going crazy.
According to the SEC report under “Adjustments” it says:
In the event of:
| · | the consolidation, merger or conversion of the Company with or into another person in each case pursuant to which the Common Stock will be converted into cash, securities, or other property of the Company or another person. |
| · | any sale, transfer, lease, or conveyance to another person of all or substantially all of the consolidated assets of the Company and its subsidiaries, taken as a whole, in each case pursuant to which Common Stock will be converted into cash, securities, or other property; or |
| · | any reclassification of Common Stock into securities other than Common Stock, |
The filing also says: “Each of which is referred to as a “reorganization event,” each share of the Preferred Stock outstanding immediately prior to such reorganization event will, without the consent of the holders of the Preferred Stock, automatically convert into the kind of securities, cash, and other property receivable in such reorganization event by a holder of the shares of Common Stock into which such share of Preferred Stock was convertible immediately prior to such reorganization event in exchange for such shares of Common Stock. In the event that holders of the shares of Common Stock have the opportunity to elect the form of consideration to be received in such reorganization event, the consideration that the holders of the Preferred Stock are entitled to receive will be deemed to be the weighted average of the types and amounts of consideration actually received, per share of Common Stock, by the holders of the Company’s Common Stock, unless holders of Preferred Stock have the opportunity to elect the form of consideration to be received in such reorganization event.“
Does this reveal something bigger in the pipeline for AMC and Ape Stock? Or is this just a way for the company to structure a filling in the case for something to possibly happen in the future.
Sources to Form 8-A12B: https://sec.report/Document/0001104659-22-086192/