AMC CEO done selling shares after offloading $7M in stock
Since November, Aron has sold more than $40 million in AMC stock
AMC Entertainment CEO Adam Aron has finished selling shares of the movie theater chain after unloading $7.1 million in stock on Tuesday.
According to a filing with the Securities and Exchange Commission, Aron sold 312,500 shares at an average purchase price of $22.84 per share.
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The sale was for estate planning purposes under a 10b51 plan disclosed on AMC's second quarter earnings call in August. Since November, Aron has sold more than $40 million worth of the company's shares.
"Prudent estate planning suggests I should diversify my assets a bit, especially with Congress having been discussing imposing potentially soaring capital gains tax rates and significant changes to what can be passed on to one's heirs," Aron told investors and analysts at the time.
Aron emphasized on Wednesday that he still owns or plans to vest in 2,302,760 AMC shares.
"I am in!," he added.
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Last year, AMC's total liquidity hit a record high of more than $2 billion after being boosted by share sales, the reopening of its theaters shuttered by the COVID-19 pandemic and a meme stock frenzy led by retail investors. Aron previously said he intends to use the cash to lower the company's debt load.
However, the stock's momentum has slowed, falling 38% in the past six months and 22% in 2022. Shares finished down 9% at the end of Thursday's trading session.
In an effort to attract customers, AMC has launched a nationwide, $25 million ad campaign, introduced alternative programming, such as live sporting events, and is accepting crypto currencies, including Bitcoin, as alternative forms of payment for online movie ticket and concessions purchases. The company has also entered into lease agreements for new theaters and has announced a planned expansion into the retail popcorn business.
In addition, Aron teased in November that the company is in discussions with multiple major Hollywood studios about the concept of joint commemorative non-fungible tokens, or NFTs, related to major film titles and several major credit card-issuing banks about the possibility of an AMC-branded credit card.
The company is also exploring the feasibility of developing its own cryptocurrency.