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AMC Entertainment CEO Adam Aron has completed selling shares of the movie theater chain after unloading $7.1 million in stock on Tuesday.
Adam Aron attends the 33rd American Cinematheque Awards Honoring Charlize Theron on November 8, 2019 in Beverly Hills, California. (Amy Sussman/FilmMagic)
According to a deposit 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 as part of a 10b51 plan disclosed during AMC’s second-quarter earnings call in August. Since November, Aron has sold more than $40 million worth of company stock.
“Careful estate planning suggests that I should diversify my assets a bit, especially with Congress discussing potentially high tax rates on capital gains and significant changes to what can be passed on to its heirs,” Aron told investors and analysts at the time.
Aron pointed out Wednesday that he still owns or plans to acquire 2,302,760 AMC shares.
“I’m in!” he added.
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AMC’s total liquidity hit an all-time high of more than $2 billion last year after being boosted by stock sales, the reopening of its theaters shuttered by the COVID-19 pandemic and a frenzy even driven by retail investors. Aron previously said he intended to use the money to reduce the company’s debt burden.
However, momentum in the stock has slowed, falling 44% in the past six months and 17% in 2022. Shares fell more than 3% in Thursday’s trading session.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| CMA | AMC ENTERTAINMENT HOLDINGS INC | 20.66 | -2.06 | -9.06% |
In order to attract customers, AMC launched a $25 million national advertising campaign, introduces alternative programs, such as live sporting events, and accepts cryptocurrencies, including Bitcoin, as alternative payment methods for online movie and concession ticket purchases. The company also entered into lease agreements for new cinemas and announced a planned expansion in retail popcorn business.
Additionally, Aron teased in November that the company was in talks with several major Hollywood studios on the concept of commemorative non-fungible tokens, or NFTs, tied to major movie titles and several major credit card-issuing banks on the possibility of an AMC-branded credit card.
The company is also investigating the feasibility of developing its own cryptocurrency.
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