$APE will go one of two ways: 1. Conversion isn't approved and the fundamental value of $APE is $0.01 (Par Value) which will be realized over time 2. Conversion is approved and $AMC Class A Commons are diluted by 32% (516M > 1.32B > 1.57B) . END OF STORY. The former is unethical.
I have no positions in $AMC. Not long, not short. You can probably make money in the short term going bullish because I never would underestimate a mob of uneducated investors. Long term though… good luck.
Here is a table explaining the dilution in three steps – left to right. The text screenshots are from their filings.
Who’s gonna end up holding the bag on $APE if the vote on conversion doesn’t pass? This essentially means the security isn’t backed by anything since it’s just a shell with no assets or revenue.
So it’s gonna end up worthless if no conversion.
And when AMC does the issuance of the remaining 480m $APE, who’s gonna buy it besides retail? Institutional investors most definitely won’t if there’s no conversion.
Ultimately, retail is just donating their own money to AMC if that’s how it plays out.
Adam Aaron is a sleaze.
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