AMC issued a special preferred shares dividend to shareholders called APE and this article will explain everything you need to know.
What is the APE Dividend and How does it work?
APE stands for AMC Preferred Equity Shares and will be paid to all AMC shareholders on record as of August 15, 2022. That means you must own AMC shares before Friday, August 12th 2022.
The APE dividend is a 1:1 preferred share so if you have 100 shares of AMC then you will receive 100 shares of APE.
Your APE shares will appear automatically in your brokerage account on August 19th, 2022 and start trading on the NYSE under a brand new ticker symbol: APE.
APE shares will start trading on the NYSE on August 22nd, 2022.
Why is AMC issuing preferred shares?
AMC CEO Adam Aaron tweeted that the APE dividend was issued mainly to reward loyal shareholders with an NFT-like gift and expose naked short sellers who bet against the stock.
Price Prediction for APE Shares
According to Adam Aaron’s tweet, AMC and APE will trade at equal prices on August 22nd. APE shares don’t come out of nowhere but take 50% of the value away from AMC stock.
For example, if AMC stock trades at $20 then APE will be worth 50% of AMC’s value, which is $10.
Both stocks could trade at the same value on APE’s NYSE debut but that will probably change quickly depending on market conditions.
Will it squeeze much higher on its first trading day on August 22nd, 2022? I have no idea but will definitely hold my APE shares through the dividend record date to see what happens.
Check this page frequently because I will update it once I receive more info on the APE dividend.