AMC Scraps Plans for Vote on 25 Million Share Sale

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Movie-theater chain AMC said it wouldn’t put the issuance of the additional Class A shares to a shareholder vote.



Photo:

Jeenah Moon/Bloomberg News

AMC Entertainment Holdings Inc.

AMC 4.31%

is dumping plans for shareholders to vote on the issuance of 25 million more shares.

In a filing with the Securities and Exchange Commission, the company said it wouldn’t put the issuance of the additional Class A shares to a shareholder vote. Chief Executive

Adam Aron

also tweeted that the company didn’t want to split shareholders with the vote, which was supposed to happen this month.

“It’s no secret I think shareholders should authorize 25 million more AMC shares,” Mr. Aron said in a tweet, adding that many shareholders were for and many were against. “AMC does not want to proceed with such a split.” He added in a second tweet that there won’t be any voting on more shares before next year.

Shares of AMC rose 3.1% in premarket trading on the news to $53.55 a share. Shares of the company had fallen early last month on the news that AMC was going to sell more stock and the company saying that buyers of its stock could be out their money.

Mr. Aron has embraced the crowd of individual investors who have driven the company’s stock higher, saying that “they’re who I work for.” Investors in the past few months have driven the company’s stock significantly higher. Shares are up more than 400% over the past three months and are up more than 2000% year to date.

The coronavirus pandemic shuttered every single AMC theater for months. But the pandemic isn’t the only thing pushing the company onto financially shaky ground. Photo Illustration: Jacob Reynolds/WSJ (Video from 11/30/20)

Write to Allison Prang at allison.prang@wsj.com

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