AMC Entertainment announced this week that 4.1 million individual shareholders own 80% of the company’s stock.
“The number of investors who want to own a part of AMC continues to increase. More than 80% of AMC shares are held by a broad base of retail investors — highly unusual for big public companies — with an average holding of around 120 shares.”
“Some hold more and some hold less, however, each and every shareholder is important to AMC. Each shareholder has a critical role to play in AMC’s future by having their voice heard by voting at our upcoming Shareholder Meeting. By voting in favor of the proposals, together we can help position AMC, in its 101st year of business, for continued success over the next century,” CEO Adam Aron said in a statement.
AMC shares in general have soared after experiencing a 52-week low of under $2, to a new high of about $73. This Wednesday the shared closed off at $49, and Wall Street Analysts have been closely monitoring the way in which that price has been fluctuating.
SEC chairman Gary Gensler said that he has “asked the agency’s staff to examine a variety of stock trading issues and rules, which are being closely scrutinized amid wild swings in so-called meme stocks like AMC, GameStop and a handful of others. Brokers profit when investors trade.”
Aron claimed that “AMC has worked the stock rise to raise cash by issuing shares and selling them at inflated prices. We’ll use the latest cash injection for acquisitions including of ArcLight Cinemas and Pacific Theaters where the chain is in discussions with landlords.”
Within the past year of the pandemic, entertainment hubs like movie theaters and museums have seen a massive decline in revenue and foot traffic; for obvious reasons. So the fact that their stock prices were so low for so long makes sense, especially for AMC which was on the brink of bankruptcy in the beginning of the pandemic.
Aron is continuing to try to get more investments, just last week he invited all shareholders to become AMC Stubs loyalty members for free, which allows them to get a free popcorn at every showing. As of this past weekend he tweeted that over 100,000 retail investors were not AMC Stubs members, quite a genius move for a company that was on the brink of extinction just a few months ago.
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at email@example.com.