As AMC CEO touts record box office weekend retail investors question need for new stock

The stakes are high for AMC's July shareholder meeting

AMC CEO Adam Aron says the movie chain's attendance broke new domestic and global records over the weekend giving the stock a lift. 

Ticker Security Last Change Change %
AMC AMC ENTERTAINMENT HOLDINGS INC 35.96 -1.05 -2.83%

"Due to a gangbuster opening of @UniversalPics F9, 2.0 million people watched a movie in @AMCTheatres Thursday through Sunday in the U.S., and 2.5 million people did so at our theatres globally," Aron tweeted Monday. "Both RECORD NUMBERS since re-opening our theatres."

Aron has been using the social media platform to appeal to shareholders of the company ahead of its annual meeting on July 29 to push for the ok to issue new shares.  It also launched Investor Connect, a platform that offers shareholder-exclusive promotions, including free or discounted items and invitations to special screenings, and direct communication on company developments. As of June 22, nearly 200,000 shareholders have signed up for the service. 

US STOCK OWNERSHIP NEARS RECORD, WILL KEEP CLIMBING

As of June 2, the company had 501,780,240 shares outstanding. Last week, Aron urged the company's shareholders to vote yes on authorizing 25 million new shares. The shares cannot be issued before January 2022.  

"Some of you fear dilution, but may be neglecting that equity raising is a powerful tool to strengthen a company and help shareholders," Aron wrote." AMC said 5 times in Jan, May and June 2021 that we diluted shares, but as a result raised $2.5 billion. AMC is so much stronger because we did."

However, following Monday's announcement, many Twitter users said the success means that AMC does not need to authorize additional shares, and said they voted no. 

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Advanced voting on AMC's agenda for next month's shareholder meeting kicked off on June 16 and will continue through July 28.

The moviegoing milestone comes as AMC shares have soared 2,700% this year.