AMC completed a reverse stock split on Thursday, ahead of the planned conversion of its preferred stock units into common shares.
The reverse split gave shareholders of the movie theater chain 1 share for every 10 shares they previously owned, and had the effect of increasing AMC’s stock price.
Converting AMC’s preferred “Ape” units and reducing outstanding shares would allow AMC to sell a significant amount of new shares as it tries to shore up its balance sheet. CEO Adam Aron He said last month Giving AMC the ability to sell shares when needed would “take the risk of bankruptcy off the table”.
