AMC Seeks Shareholder Approval for 500 Million Shares’ Worth of More Dilution

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Despite numerous rounds of dilution AMC Entertainment Holdings (NYSE: AMC) investors have already endured over the past year to keep the company afloat, CEO Adam Aron told CNBC’s Jim Cramer he wants shareholders to approve yet another tranche of stock being issued so the movie theater chain can capitalize on its still elevated stock price.

Aron said he doesn’t dismiss concerns about dilution, but by issuing 500 million more shares of AMC stock, “there’s an opportunity to bolster our cash reserves and there’s an opportunity to buy back debt at a discount or pay deferred theatre rents.” “There are a lot of good reasons for shareholders to give us the authority,” he added.

The market doesn’t seem to agree — shares were falling 5% in morning trading.

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