AMC Entertainment Holdings (NYSE: AMC) CEO Adam Aron surprised investors today, announcing on Twitter the company is pulling a proposal to add shares from a shareholder vote. Investors liked the decision, and shares of the theater operator popped 6% at the market open today. As of 10:10 a.m. EDT, the stock had settled back but remained up about 2%.
AMC also put out an SEC filing announcing its change of plans regarding adding 25 million shares to its treasury. But Aron's Twitter comment told more of the story. Aron had been pushing for the company's base of retail investors to back his plans to add to the outstanding share count, allowing AMC to raise more capital. The company has raised nearly $3 billion in equity and debt in the past year. But the retail investors that now make up more than 80% of shareholders didn't seem to want to dilute their shares any further.
Source Fool.com