AMC cancels vote on the sale of 25 million new shares after investors diverge from CEO and rally against it

Adam aron, AMC CEO
Adam Aron, AMC CEO Alberto E. Rodriguez / Getty Images

AMC canceled a proposal that would have asked its shareholders to allow the movie theater chain to issue up to 25 million more shares, SEC filings show.

CEO Adam Aron tweeted on Tuesday that AMC would not proceed with the vote, and added that the movie theater operator will not make any more share increase requests in 2021.

“It’s no secret I think shareholders should authorize 25 million more AMC shares. But what YOU think is important to us. Many yes, many no,” Aron tweeted, alongside an image with the phrases “I see you, I hear you, I value you.”

The share increase was one of five proposals on the agenda during AMC’s upcoming annual meeting of stockholders.

The Board of Directors indicated they were for the share increase, and CEO Adam Aron said last month that the increase would be an important tool to strengthen the company.

Reddit users in the r/AMCstock channel cheered the movie theater chain’s decision to cancel the vote. Many speculated that AMC canceled the vote because so many shareholders had already voted against it.

“He did it! Adam Aron fu**in took the one thing that was dividing apes and squashed it! KING SILVER BACK BABY!!!!!,” one user commented, referring to Aron’s nickname among retail investors on Reddit.

Shares of AMC jumped as high as 5.9% after the Tuesday opening bell.

AMC’s annual meeting of stockholders will take place on July 29 at 2 p.m. central time. Proposals still on the agenda include re-electing certain board directors, approving the appointment of Ernst & Young as independent auditors, approving a non-binding vote on the compensation of executive officers, and voting on the ability to adjourn the stockholders meeting if necessary.