By Dhirendra Tripathi
Investing.com – AMC (NYSE:AMC) rose 1.7% Tuesday after dropping plans to seek shareholder approval to issue 25 million more shares.
In a filing Tuesday, AMC said the proposal to increase its outstanding shares to about 549 million would no longer be up for a vote at its July 29 annual meeting.
“It’s no secret I think shareholders should authorize 25 million more AMC shares,” AMC Chief Executive Officer Adam Aron said in a tweet Tuesday. “But what YOU think is important to us. Many yes, many no. AMC does not want to proceed with such a split.”
The theater chain proposed the share increase in a separate filing June 3, seeking to capitalize on the Reddit-driven rally that had boosted the so-called meme stock by 2,300% this year to that point. The stock was up more than 2,350% for 2021 through July 2, according to Bloomberg.
In less than a 30-day period leading up to June's first week, AMC raised $1.24 billion combined through three share sales.
Not only that, according to Aron, there will be no more share sale in 2021.
“Of course, voting on the other 4 issues requiring approval at the July 29 annual AMC shareholder meeting will continue on schedule. But proposal 1 is hereby officially tabled. There will be no voting before 2022 on more shares,” Aron said in a second tweet.