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AMC Entertainment Holdings Inc. has again asked the New York Stock Exchange and the Financial Industry Regulatory Authority to look into the trading of its stock, with CEO Adam Aron citing a high number of “fail to deliver” shares.
“Many of you are incensed by the high number of ‘Fail to Deliver’ AMC shares, and that AMC again has been on the Threshold List for multiple weeks,” he tweeted Wednesday. “We repeatedly have gone to the NYSE and FINRA, and did so again in July, to put and keep this entire situation on their radar.”
In March, Aron tweeted that AMC
AMC,
had asked the NYSE and FINRA to look closely at the trading of its stock.
Related: AMC asks NYSE and FINRA to ‘look closely’ at the trading of its stock
A threshold security is defined as one where, for at least 0.5% of the issuer’s total shares outstanding, transactions have failed to deliver, or failed to clear, for five consecutive settlement days at a registered clearing agency of 10,000 shares or more per security.
Failure to deliver, or FTD, can be associated with naked short selling, in which investors don’t bother borrowing the stock first and simply sell shares with a promise to deliver them at a later date. When that promise is not fulfilled, it’s known as FTD.
AMC’s stock is up 0.3% in premarket trades Thursday after ending Wednesday’s session down 2.6%. The stock is up 17.9% in 2023, outpacing the S&P 500’s
SPX
gain of 17.6%.
Related: AMC enjoys ‘best week ever’ for box-office revenue, fueled by ‘Barbie’ and ‘Oppenheimer’
The movie-theater chain and meme-stock darling reports its second-quarter results after the market close on Aug. 8.
AMC’s plan to convert its AMC Preferred Equity units
APE,
to common stock was blocked last month when a Delaware judge rejected a settlement that would have allowed the deal to proceed. The stock-conversion plan was part of the company’s ongoing battle to eliminate debt.
The APEs have risen 28.4% in 2023.
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