AMC Entertainment (NYSE: AMC) stock jumped during intraday trading Wednesday after shareholders voted to elect three new board directors, rejecting the company’s proposal to declassify the board.
AMC Entertainment held its annual shareholder meeting on Wednesday, with early results indicating significant changes to its board of directors.
According to reports citing Bloomberg via Benzinga Pro, AMC shareholders voted to elect three new directors to the board following the failure of the company’s proposal to declassify the board.
Proposals at the Shareholder Meeting
AMC had proposed an amendment to its certificate of incorporation aimed at declassifying its board and shortening all existing terms to expire at the annual shareholder meeting. However, this proposal didn’t receive sufficient support from shareholders on Wednesday.
AMC included a conditional proposal, which, upon acceptance of the declassification proposal, would have enabled investors to vote for the approval of all board members for a new term. Since the declassification proposal failed, only three board members were up for re-election. Shareholders subsequently voted to re-elect Philip Lader, Gary Locke, and Adam Sussman.
The shareholder meeting encompassed nine proposals, including a vote to approve the company’s 2024 equity incentive plan. However, the results of the remaining proposals have yet to be announced.
The news comes amidst heightened interest in AMC shares, which have been subject to volatility in recent weeks, fueled by renewed interest in meme stocks. The resurgence of interest was notably sparked by the return of Keith Gill, also known as Roaring Kitty to social media platforms.
Taking advantage of this renewed interest, AMC entered into agreements to issue stock in exchange for notes. Last month, the company announced that it had raised approximately $250 million in new equity capital by selling 72.5 million shares from an offering launched in March.
In a related development, S&P Global Ratings upgraded AMC Entertainment Holdings from “SD” (selective default) to “CCC+” on Wednesday.
AMC Entertainment (NYSE: AMC) Stock Movement
On Wednesday, AMC stock surged 7.52%, closing at $5.15, marking a 14.44% increase for the week. The trading volume was 61,049,867 shares, significantly higher than the average daily volume of 51.19 million.
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