CEO Adam Aron said that AMC Entertainment Holdings Inc. has asked the New York Stock Exchange and FINRA to pay close attention to how its stock is traded.
“Many of you and we know that AMC Entertainment has been on ‘The Threshold List’ for more than three weeks, which means there have been a number of FTDs,” Aron wrote in a tweet late Tuesday night. “Some of you may be happy to hear that we’ve asked both FINRA and the NYSE to pay close attention to how our stock is traded.”
A threshold security is one for which at least 0.5% of the issuer’s total outstanding shares have failed to deliver (or clear) for five settlement days in a row at a registered clearing agency for transactions of 10,000 shares or more per security or more.
Failure to deliver, or FTD, is sometimes linked to naked short selling, in which investors don’t bother to borrow the stock first and just sell shares with a promise to deliver them later. FTD is the term for when that promise is not kept.
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On Wednesday, shares of AMC fell by 0.3%. The stock of the company has gone up 47.4% in 2023, which is more than the 3.9% gain of the S&P 500 index SPX, +0.14%.
Last week, the movie theater chain and “meme stock darling” said that it had lost money for the 14th quarter and 4th year in a row.
AMC said in January that there would be a special meeting of shareholders on March 14 to increase the number of authorized AMC shares from just over 524 million to 550 million and approve a 1-for-10 reverse split of the company’s common stock, which would convert AMC Preferred Equity APE, +1.14% units into shares of common stock. This is part of the company’s ongoing fight to get out of debt, but it will now have to go to court.
During the conference call to talk about the results, Aron said, “We don’t see any reason to file such a lawsuit.” “We will fight hard for our point of view on this issue.”
Over the past two years, AMC has been on a roller coaster ride that has taken it from being a victim of a pandemic to becoming a meme-stock phenomenon. AMC took advantage of the sharp rise in the price of its shares to raise $917 million in January 2021 through the equity and debt markets.
seven analysts what they thought about AMC. Three said to hold the stock, and four said to sell it.