AMC asks NYSE and FINRA to ‘look closely’ at the trading of its stock

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An earlier version of this story featured incorrect stock movement data for AMC. This has now been corrected.

AMC Entertainment Holdings Inc. has asked the New York Stock Exchange and FINRA to closely monitor the trading of its stock, according to CEO Adam Aron.

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“Many of you and we know AMC Entertainment has been on ‘The Threshold List’ for 3+ weeks, indicating multiple FTDs,” Aaron tweeted late Tuesday. “Some of you may be pleased to note that we have contacted both FINRA and the NYSE and stated that they both closely watch the trading of our stock.”

A threshold protection defined as one where the transaction accounts for at least 0.5% of the total outstanding shares of the issuer failed to deliver (fail to settle) for five consecutive settlement days at a registered clearing agency of 10,000 shares or more per security.

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Watch Now: Why Naked Short Selling Has Suddenly Become a Hot Topic

Failure to deliver, or FTD, can be associated with naked short selling, where investors don’t bother to first borrow the stock and later sell the shares with a promise to deliver them. When that promise is not met, it is known as FTD.

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The stock fell 0.3% on Wednesday. The company’s stock is up 47.4% in 2023, beating the SPX of the S&P 500 index.
Profit of 3.9%.

Last week, the movie theater chain and meme stock darling reported its 14th straight quarter of losses and the fourth year in a row.

AMC stock falls after 14th straight quarter of losses, in red for fourth year in a row

AMC announced in January a special meeting of shareholders on March 14, increasing the number of AMC authorized shares from 524 million to 550 million and converting AMC preferred equity APE, 1-for-1, to the Company’s common stock. -10 reverse splits authorized.
Units in shares of common stock. The move is part of the company’s ongoing battle to eliminate debt, but it is now facing court proceedings.

“We believe that this type of litigation is without merit,” Aron said during the conference call to discuss the results. “We will vigorously defend our position in this matter.”

Over the past two years, AMC has been on a roller-coaster ride that took it from crippling pandemic victim to meme-stock phenomenon. The AMC used the massive increase in its share price to tap into the equity and debt markets by raising $917 million in January 2021.

What’s next for AMC? After the Q4 beat, focus turns to the major shareholder vote.

Of the seven analysts surveyed by FactSet, three have a hold rating and four have a sell rating on AMC.

Additional reporting by Ciara Lynne and Jeremy C. Owens.

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