AMC Entertainment Announces At-The-Market Offering Program and Withdraws Proposal to Increase Authorized Shares
AMC Entertainment Holdings, Inc. (NYSE: AMC) (“AMC” or the “Company”) today announced that to further bolster its cash reserves, AMC filed a shelf registration today with the U.S. Securities and Exchange Commission to permit the issuance and sale of up to 43 million shares of the Company’s Class A Common Stock from time to time through an “at-the-market” equity offering program.
Additionally, and importantly, AMC also announced today that its Board of Directors will no longer seek stockholder approval to amend its charter to increase by 500 million the total number of authorized shares (“Proposal 1”) at AMC’s annual meeting.
Adam Aron, CEO and President of AMC said, “We have previously pointed out that the sale of up to 43 million AMC shares, the currently available amount for possible issuance under a previous shareholder authorization, should more than satisfy AMC’s liquidity needs for 2021. This assumes an expected recovery in the patronage of movie theatres in the second half of this year. In asking AMC shareholders to vote on approving another 500 million authorized shares, we noted that our goal was to increase longer term optionality and flexibility for AMC, but that we had no intention of actually issuing any of those 500 million shares in the immediate term.”
Aron continued, “We believe our shareholders will appreciate and benefit from our bolstering AMC’s cash reserves with the potential sale of up to 43 million shares as detailed in an S-3 filing today. However, as to the request for 500 million further shares to be authorized, many of our stockholders are telling us to wait. It is important to listen to these owners of our company, and that’s exactly what we are going to do. Accordingly, we will not vote on Proposal 1 at our May 4 Annual Meeting of Shareholders. With a long term view, we continue to believe that this proposal would be beneficial to AMC and to our shareholders, and we are likely to revisit a proposal to increase the number of authorized shares at some point in the future.”
The annual meeting remains scheduled for Tuesday, May 4, 2021 at 2:00 p.m. (Central Time) at the AMC Theatre Support Center, One AMC Way, 11500 Ash Street, Leawood, Kansas 66211 at which time AMC will process the vote on the balance of Company’s proposals. The Board continues to recommend a “FOR” vote for all proposals.
This press release is for informational purposes only and it does not represent an offer to sell or the solicitation of an offer to buy any of the Company’s Class A Common Stock. There will be no sale of Class A Common Stock in any jurisdiction in which one would be unlawful.