Business

AMC CEO Adam Aron sold $ 25 million in shares on Tuesday, warning meme investors he would do it

Adam Aron, Chairman and CEO of AMC Entertainment, speaks at the Milken Institute Global Conference on October 18, 2021 in Beverly Hills, California.

Patrick T. Fallon | AFP | Getty Images

AMC Entertainment CEO Adam Aron sold 625,000 shares on Tuesday, half of what he ultimately plans to dump as part of a sales program filed with the SEC.

The sale is part of the executive’s estate planning ahead of his 67th birthday next year, Aron told investors last August. He confirmed the plans during a telephone conversation with investors and analysts on Monday.

The stock fell 4% on Wednesday and another 1% after the close of trading.

The sale of the shares was posted on the SEC website following a call on Wednesday. The stake was sold at an average price of $ 40.53, or about $ 25 million.

Earlier in the day, Aron’s stock plans were disclosed in separate filings that appeared on a section of the SEC’s website that displays paper forms sent by email.

The form gave Aron the right to sell all 1,250,000 shares in or within the next days, weeks and months, Ben Silverman of InsiderScore.com noted.

With a new application after the call, investors learned that he had already dumped half of the stake the day before.

AMC representatives confirmed Aron’s statements during a telephone call on Monday when they were asked to comment on the situation.

“During our last call, I also indicated to you that in September 2021 I will turn 67 years old, young, energetic, energetic, full of life 67, I could add, but 67 nonetheless,” he told investors on the call. “Sound estate planning suggests that I should diversify my assets a little, especially as Congress has been discussing potentially high capital gains tax rates and significant changes in what can be passed on to heirs.”

Aron once again told investors that in his nearly six years at AMC, he never sold his shares, save for the 500,000 shares he gave to his grown children.

“If you count, you will see that with the current and future ownership of AMC, I have a tremendous personal interest in the future of our company, your company, AMC Entertainment,” he said. “I truly believe in AMC and my interests overlap in many ways with our broad shareholder base to take care of the value of your current investment and my current investment in AMC Entertainment shares.”

AMC stock has skyrocketed more than 1,700% this year, fueled by the meme craze this year.

The movie theater chain was hit hard by the pandemic and nearly filed for bankruptcy in late 2020. However, the rally in its stock allowed the company to gain nearly $ 2 billion in liquidity and stabilize as the box office began to soar.

During the third quarter, the company increased admission revenue to $ 425.1 million from $ 62.9 million a year earlier. Food and beverage sales also rose to $ 265.2 million from $ 29.1 million year on year.

However, AMC’s operating expenses exceeded revenues, resulting in the company posting a quarterly loss. The company said that if domestic box office receipts hit at least $ 2 billion during October, November and December, it could show positive cash flow for the fourth quarter.

– Reporting by Yun Li.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button