AMC Entertainment Announces 10-to-1 Reverse Stock Split

Company Consolidates Shares to Improve Liquidity

AMC Entertainment Holdings, Inc. (AMC) announced on Monday that its previously announced 10-to-1 reverse stock split will take effect. The reverse split aims to consolidate the company's outstanding shares and improve its liquidity.

10-to-1 Split to Take Place

Effective on August 15, 2023, AMC's common stock will undergo a 10-to-1 reverse split. This means that every 10 shares of AMC common stock currently held by shareholders will be consolidated into one new share.

The reverse split is a financial maneuver aimed at reducing the number of outstanding shares and increasing the stock's price per share. By consolidating its shares, AMC aims to attract institutions and larger investors who may be deterred by low-priced stocks.

Improving Liquidity

AMC believes that the reverse split will improve the liquidity of its stock. With fewer shares outstanding, the stock is more likely to be traded by institutional investors and larger market participants. This increased liquidity should enhance the trading volume and reduce price volatility.

The company expects the reverse split to enhance its financial flexibility and provide more opportunities for capital raising in the future. It is also intended to align AMC's share structure with industry peers and create a more favorable environment for potential acquisitions.