NOT FINANCIAL ADVICE
Basically, AMC is creating a new class of shares for the company. It will be traded under APE, AMC Preferred Equity. It will be issued to AMC shareholders on a 1:1 basis, you will have one APE for every AMC that you own. The initial value will be 1/100 of the AMC share and will not effect the price of your AMC share (from what I understand.) This means that it will be initially offered to the public at $.20 (at the current price.) You will receive the dividend stock if you are holding AMC at close of market 8/8/22.
Now the good parts, the potential. Brokers selling naked shorts, which means they are selling shares that they do not own, will have to buy APE shares to issue to their naked short shareholders. Or risk having APE moon on them which could result in incalculable losses if they are ever called in (someone else is going to have to explain the NFT market and the moving of AMC/APE shares to it.) The other upside here is the average Joe seeing an opportunity to buy a potential $50 (or more) stock for twenty five cents.
Buy more GME? Got it.
Yeah AMC remains a distraction where the executives sold all their stake and continue to dilute the shares, GME meanwhile continues to have massive inside buying. The AMC CEO is also an Apollo guy who has a history of running companies into the ground.
https://www.reddit.com/r/GMEJungle/comments/wggshv/the_saga_continues/
Top Comment, not mine:
Oniyuki89 · 16 hr. ago
Okay, I read a few articles regarding the popcorn dividend and I'm pretty smooth-brained (plus it's my bed time), but I don't see how this dividend would be of help with the assumed shorting of popcorn stock. In fact, it looks like a pretty bad trap.
Hopefully someone can give more info or better explain how this dividend will have the same effect as GME's dividend, but from what I'm understanding so far, popcorn created 5 billion units of a new ticker as a way to get around the rejection of increasing the number of shares last year.
After giving away about 500 million units of these new "APE" shares they will still have 4.5 billion shares left to sell into the broader market. This gives them the ability to fund raise more money, but also dilutes the new shares which was the reason why investors voted against increasing the number of popcorn shares in the first place.
Also, from the article I read, "each Popcorn Preferred Equity Unit is designed to have the same economic and voting rights as one share of Common Stock". So, there will potentially be 4.5 billion more shares in the marketplace, each having an equal vote as one common share, but at a lower price.
The articles I read also said the new shares can be converted into common shares by voting to increase the maximum number of common shares by the investors. So hypothetically, hedge funds can buy up the 4.5 billion shares giving them majority vote, then vote to increase the number of common shares and converting their new shares into common shares, which they can then use to close out any short positions of popcorn stock.
Am I wrong on how this can go wrong for popcorn? I need answers and speculations!
Yes, and now you own the highly sought after APE stock for which you paid zero dollars and zero cents.
Are you ready to play a game?
Fuk sticky floor distractions... Only gme matters. I own a tiny amount of popcorn just for pocket change once the real moass happens... Dont be distracted by dudes who sell their own stock and buy gold mines.... Invest in owners who actually believe in their own business
Excuse me, $.21 ipo price 🙂
Should I DRS my AMC at this point, or wait till after the issue? I'm assuming go ahead with drs anyways and I should get my ape too.
Yes, the DRS is the key to this, you know that you have authentic shares and it squeezes the naked shorts.
Cool. Was about to initiate right now. Just finishing the dishes. Thanks for the reminder