Aron expressed his frustration on Wednesday, acknowledging the stock's continuous presence on the Threshold List. In an effort to address this ongoing issue, AMC has repeatedly approached the NYSE and FINRA, including a recent communication in July, to ensure they are aware of the situation.
This is not the first time AMC has sought the assistance of NYSE and FINRA in monitoring their stock trading activities. In March, Aron publicly called upon these organizations to closely examine the trading of AMC stock.
In the financial market, a threshold security refers to a situation where transactions fail to deliver or clear for five consecutive settlement days at a registered clearing agency, representing at least 0.5% of the total shares outstanding for the issuer. Such failures to deliver are often linked to naked short selling – a practice where investors sell shares without borrowing them first, with a delayed commitment to deliver the shares at a future date. When this commitment is not fulfilled, it results in a failure to deliver.
Following Wednesday's trading session, AMC's stock experienced a decline of 2.6%. However, it showed a slight recovery in premarket trades on Thursday, rising by 0.3%. Overall, in 2023, AMC's stock has achieved an impressive growth of 17.9%, outperforming the S&P 500 index's gain of 17.6%.
As an update, AMC is eagerly awaiting its second-quarter results, which are scheduled to be announced after the market closes on August 8th. The movie-theater chain, known for its meme-stock status, had plans to convert its AMC Preferred Equity units to common stock. Unfortunately, a recent setback occurred when a Delaware judge rejected a proposed settlement that would have allowed the conversion to proceed. This conversion plan was a crucial step for AMC in its ongoing battle to reduce its debt burden.
In 2023, the value of AMC Preferred Equity units (APEs) has seen a significant increase of 28.4%.
AMC's continuous efforts to address and rectify trading concerns clearly demonstrate their dedication to preserving the integrity of their stock and protecting the interests of their shareholders.