AMC rises after abandoning plan to look for a nod for more stocks

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(Bloomberg) — Shares of AMC Entertainment Holdings Inc rose as much as 6% after it said it would no longer seek shareholder approval to issue an additional 25 million shares.

In a statement on Tuesday, AMC said a proposal to increase its outstanding shares to approximately 549 million would not be up for a vote at its annual meeting on July 29.

“It’s no secret that I think shareholders should authorize an additional 25 million shares of AMC,” AMC CEO Adam Aaron said in a tweet on Tuesday. “But what you think is important to us. Many yes, many no. AMC does not want to go ahead with such a split.”

The world’s largest theater chain proposed a stake increase in a separate file on June 3, seeking to capitalize on a Reddit-driven rally that has boosted its so-called meme stock by 2,300% this year up to that point. The stock is up more than 2,350% from 2021 through July 2.

AMC had previously sought to license 500 million new shares. This proposal was originally put to a vote in May, but the annual meeting was postponed and the request was withdrawn after it became clear that investors would block it.

Aaron said in April that the troubled company could issue about 43 million new shares. With sales of new stock totaling more than $800 million in one week in early June, AMC has completed nearly all of that mandate, according to a June 3 filing.

“There will be no more voting before 2022 on more shares,” Aaron said in another tweet on Tuesday.

(Updates with posts in the first paragraph.)

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