A major Chinese investor in AMC Entertainment Holdings Inc (NYSE: AMC) converted its shares in the cinema operator in order to sell them, as filed with the United States Securities and Exchange Commission.
What happened: Wanda America Entertainment Inc, a unit of the Beijing-based Wanda Group, converted its Class B common shares into AMC Class A shares on February 1 “to allow the sale of its common shares,” according to the document.
No details on the number of shares converted were provided in the SEC document.
The Chinese conglomerate had acquired a majority stake in AMC for $ 2.5 billion in May 2012.
Why it matters: AMC is still a majority owned subsidiary of the Wanda Group, according to the latter’s website.
The theater chain along with GameStop Corp. (NYSE: GME), Blackberry Ltd (NYSE: BB), and Nokia Oyj (NYSE: NOK) are targets of r / WallStreetBets, a Reddit forum, which has been doing a little squeeze in recent weeks.
The tightness in the short sale caused institutional short sellers, such as Melvin Capital and Citron Research, to present losses when covering their sales.
Reddit investors received support from celebrities, investors and others like Mark Cuban, Dave Portnoy, Tesla Inc (NASDAQ: TSLA) CEO Elon Musk and others.
See too: Dave Portnoy bets $ 700,000 on AMC again after leaving all Meme Stocks
At the end of January, AMC’s shares rose by 804% at one point. Shares rose more than 200% year-to-date at the close of Friday.
Price action: AMC’s shares closed nearly 3.7% down to $ 6.83 on Friday and rose nearly 0.6% in the after-hours session.
Read below: AMC Explores Another Stock Sale Amid Reddit-Powered Rally: Report
Photo courtesy: Coolcaesar via Wikimedia
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