What to expect from AMC Special Dividend
AMC announces a Preferred Equity Unit dividend for listed shareholders.
AMC Entertainment Holdings has declared a special preferred stock dividend to $AMC shareholders. The company filing states that listed shareholders will receive one Preferred Equity Unit for each share of $AMC common stock. AMC has applied to list its Preferred Equity Unit under the symbol “APE”.
We’re working directly with our broker partner to keep customers who hold $AMC up to date. Given this unique scenario, new information may become available and will be shared below.
What is $APE?
As per the official statement, “APE” is the proposed ticker symbol that AMC’s Preferred Equity Unit and will be listed under the ticker $APE on the New York Stock Exchange.
What is the value of $APE?
According to the AMC SEC filing, the value of one “APE” share is equivalent to $0.01 per share of AMC Class A Common Stock ($AMC).
What are preferred equity units?
Preferred equity units are a form of share capital that a company issues. Preferred equity units contain the ability to have a higher priority for distributions or rights compared to common stock in a company. According to AMC’s official filing, $AMC shareholders will receive one AMC Preferred Equity unit for each company-issued share of AMC common stock that they own.
Each Preferred Equity Unit represents 1/100 of a share in the company’s Preferred Stock (note: Preferred Equity Unit DOES NOT = Preferred Stock). Each Preferred Stock is potentially convertible into 100 shares of Common Stock.
Who is eligible to receive $APE stock?
Customers who hold a share of AMC Class A common stock, outstanding at the close of business on August 15, 2022, will be eligible to receive $APE stock. This will also apply to fractional positions, and holders will receive fractional positions in APE at the 1:1 ratio.
When will I be paid my special dividend in $APE?
The special dividend is expected to be paid at the close of business on August 19, 2022. Please note, however, that these may not become visible in your Stake account until trading of $APE commences at market open on August 22, 2022. DriveWealth cannot support trading until the shares are actually allocated by DTC. There is sometimes a 1-2 business day delay between the proposed pay date and the posting date,
When will trading of $APE commence?
Trading of AMC Preferred Equity Units on the New York Stock Exchange (NYSE) will commence on August 22, 2022 (the ex-dividend date). Please note that APE may only be tradeable on August 23 or August 24 depending on the allocation time. Upon availability, APE will become tradeable on the platform at market open.
What if I own fractional shares of AMC?
We are currently working with our broker partner to understand the implications of fractional shareholders of AMC being issued fractional shares of $APE. We will provide more information as this becomes available.
How do I convert APE to common stock?
We are currently working through the logistics of conversion of $APE to Common Stock with our broker partner. We will provide more information as it becomes available. Please note that the SEC filing made by AMC recognises:
“Conversion can take place, but only if the company proposes and shareholders (including APE holders) vote to approve the authorisation of additional common shares at a future AMC Entertainment stockholder’s meeting.”
What are the Tax implications of this special dividend?
This special dividend does not create a taxable dividend since there is no distribution of cash, nor is there a corresponding sale of shares. This special dividend entails the issuance of newly listed stock – APE. However, if you sell this security, this would trigger a taxable event. As always we advise all customers to seek professional tax advice.
How do I claim the “I own APE” NFT?
Per the AMC Sec filing, all shareholders of $APE will be eligible to claim the “I own APE” NFT.
“All 765,000 current AMC Investor Connect members, and new members who join by August 31, 2022, will be eligible to receive for free this unique NFT to symbolise ownership of the new AMC Preferred Equity unit security.”
Want to find out more?
For more information, you may want to refer to the following resources:
AMC Preferred Equity Unit Dividend SEC 8-K Filing
Comparison Between AMC Preferred Equity Units and Common Stock
AMC Announces Special Dividend of Preferred Equity Units
Or contact AMC directly – https://www.amctheatres.com/stockholders