AMC Entertainment Holdings Inc (NYSE:AMC) held its annual shareholder meeting Wednesday and the early results are out.
What To Know: AMC's annual meeting of shareholders kicked off at 2 p.m. ET. According to Benzinga Pro headlines citing Bloomberg, AMC shareholders voted to elect three new directors to its board after the company's proposal to declassify the board of directors failed.
AMC proposed an amendment to its certificate of incorporation to declassify its board and shorten all existing terms to expire at the annual shareholder meeting. That proposal failed to get approved by shareholders on Wednesday.
AMC included a conditional proposal allowing investors to vote to approve all board members for a new term if Proposal 1 was accepted. Given that it failed, there were only three board members that needed to be reapproved. AMC shareholders subsequently voted to elect Philip Lader, Gary Locke and Adam Sussman to the board.
A total of nine proposals were voted on during the meeting, including a vote to approve the company's 2024 equity incentive plan. The results of the remaining proposals have not been announced.
Why It Matters: AMC shares are moving higher on Wednesday. The stock has been volatile in recent weeks amid a resurgence of interest in meme stocks. The volatility was sparked by the social media return of Keith Gill, also known as Roaring Kitty.
AMC took advantage of the renewed interest, entering into agreements to issue stock in exchange for notes. AMC also said last month that it raised approximately $250 million of new equity capital through the sale of 72.5 million shares from an offering it launched in March.
On Wednesday, S&P Global Ratings upgraded AMC Entertainment Holdings From "SD" (selective default) to "CCC+."
AMC Price Action: AMC shares were up 7.94% at $5.17 Wednesday afternoon, per Benzinga Pro.
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