People are walking outside the new AMC 34th Street 14 board, while the city continues phase 4 of the reopening following restrictions imposed to slow the spread of the coronavirus on September 4, 2020 in New York.
Noam Galai | Getty Images
Chinese group Wanda, the main shareholder of AMC Entertainment Holdings, has made a conversion of shares to allow the sale of its shares to the cinema operator, a target of the recent WallStreetBets retail frenzy, AMC said in an exchange file.
Wanda America Entertainment, a Wanda unit, converted its common Class B shares in AMC to Class A shares on February 1, “to allow the sale of its common shares,” AMC said in its filing with the Securities and Exchange Commission in United States on February 5.
The filing did not provide details on the amount of shares converted into Class A shares, nor did it say whether Wanda sold shares to AMC. Wanda did not immediately return a request for comment.
AMC shares hit $ 17.25 on Feb. 1, nearly four times a week earlier, as social media platforms like Reddit fueled the frantic retail buying of short-circuit stocks like AMC and GameStop .
AMC shares fell 41% the next day, and shares have now fallen about 60% from the February 1 high.
The trading frenzy fueled by social media has cooled in recent days, as US financial regulators are examining the growth of GameStop’s Reddit-based stocks.
Wanda, whose business ranges from real estate to entertainment, bought a majority stake in AMC in 2012 for $ 2.6 billion, in what was then the largest overseas acquisition of a Chinese private company.
In 2018, the Chinese conglomerate, once acquired, reduced its exposure to the US film operator amid stricter regulatory control by Beijing over the expansion of Chinese companies abroad.
Wanda still holds a controlling stake in AMC, according to the group’s website. Wanda also owns Hollywood producer Legendary Entertainment and Australian film chain Hoyts Cinema, the website said.