AMC CEO Adam Aaron has submitted an order to sell 1.25 million shares, after warning right-wing investors that he will do so

Adam Aaron, Chairman and CEO of AMC Entertainment, speaks during the Milken Institute World Conference on October 18, 2021 in Beverly Hills, California.

Patrick T. Fallon | AFP | Getty Images

AMC Entertainment CEO Adam Aaron has filed papers with the Securities and Exchange Commission allowing him to sell 1.25 million shares in the cinema company.

Aaron told investors last August that the sale would be part of the executives’ estate planning ahead of his 67th birthday next year. Repeat those plans During an earnings call with investors and analysts on Monday.

The stake is worth about $48 million when AMC closes on Wednesday. The stock was down 4% during the session.

“In our last call, I also indicated to you that in September 2021 I will be 67, young, vibrant, full of life, 67 may I add, but 67 nonetheless,” he told investors on a call. “Prudent estate planning suggests that I should diversify my assets a bit, especially with Congress debating the possibility of higher capital gains tax rates and significant changes to what can be passed on to one’s heirs.”

Aaron told investors again that in his six years with AMC he never sold any of his stock, except for the 500,000 shares he gave to his adult children. He also said that any potential share sale would take place over three different calendar months.

At the end of these sales, Aaron said he would still own more than two million shares in the company.

AMC representatives could not immediately be reached for comment. The registration appeared in a section of the SEC website showing files submitted in paper form via email. Insider Sales Analyst Ben Silverman of InsiderScore.com confirmed its authenticity.

Silverman noted that the form gave Aaron the right to sell his entire 1,250,000 equity stake already, or over a period of days, weeks, and months ahead. It won’t be clear at what speed Aaron sells stock until separate forms for those individual sales are filed with the Securities and Exchange Commission.

“If you do the math, you’ll see that with so much current and future ownership of AMC, I have an enormous personal stake in the future of our company, and your company, in AMC Entertainment,” he said. “I believe strongly in AMC and my interests are very much aligned with our broad shareholder base to be very interested in the value of your continued investment and my continued investment in the AMC Entertainment stock.”

AMC shares are up more than 1,700% this year, buoyed by this year’s stock meme frenzy.

The movie theater chain was hit hard by the pandemic and nearly filed for bankruptcy in late 2020. However, an increase in its stock allowed the company to earn nearly $2 billion in cash and establish itself as the box office began to recover.

During the third quarter, the company saw entry revenue increase to $425.1 million from $62.9 million in the same period last year. Its sales of food and beverages also rose to $265.2 million from just $29.1 million year on year.

However, AMC’s operating costs outpaced its revenue, resulting in the company incurring a loss this quarter. The company said if the The domestic box office hits at least $2 billion during the months of October, November and December, It will be able to post positive cash flow for the fourth quarter.

– With reporting by Yun Lee.

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