Shares of AMC Entertainment Holdings Inc. AMC dove 7.2% in afternoon trading Tuesday, putting them on track to close at a 22-month low. The “meme” stock has now plunged 22.8% amid a three-day losing streak, since the movie theater operator announced a $110 million equity capital raise, and said it would propose a boost in common shares outstanding to permit the conversion of AMC’s preferred equity units APE, or APEs. Meanwhile, the APEs rose 7.8% on Tuesday, and have rocketed 171.0% over the past three sessions. B. Riley analyst Eric Wold said he is concerned that AMC shareholders will not approve a conversion with additional authorized AMC common shares. “While and APE conversion may create a strong path to debt reduction, pushing AMC shares lower may result,” Wold wrote in a note to clients. Wold reiterated his neutral rating on AMC. The stock has plunged 43.5% in December while APEs have soared 91.9% and the S&P 500 SPX has slipped 6.2%.
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