Today I Want to talk about how AMC can now finally pay a dividend? AMC has just announced the sale of those 40 million shares and has already used that cash generated to buy back a massive portion of debt at a huge discount. And that debt was the final thing preventing AMC from paying dividends and from making share. BuyBacks So stay tuned and let's make some money. And now I'll drive straight in with the curation.

So Boss Blunt's tweeted Same breaking news: AMC can now issue dividends. He said the AMC's bonds debt covenants that have prevented AMC from issuing dividends appear to have been paid off by AMC with their fresh infusion of 325 million dollars in cash raised by their 40 million share issuance. So Robert tweeted saying the 2026 Bond was 478 million dollars. The sale of 40 million shares generated 325 million dollars in cash.

That leads to a 32 discount. 478 million dollars minus 32, which is 153 million. It's precisely 325 million dollars. We can also see here a screenshot of AMC's bonds.

As you can see, there's various bonds between Double B rated and Triple C rated. But while these Double B rated bonds still have a yield and price to maturity, these Triple C rated bonds no longer have that as they've just been repurchased. These were AMC's bonds carrying the highest coupon rate or the highest interest rate the AMC has now repaid. But also, let's check out the covenants that came with these bonds that have just been repaid which now allow AMC to pay dividends and make share repurchases.

So from the Sec's website it says this indenture contains covenants that limit the company's ability to pay dividends on or make other distributions in respect of its Capital stock. But it also prevents AMC from purchasing or redeeming Capital stock or prepay subordinated debt or other. Junior Securities First, It also says that any time after January 15, 2023 at the Redemption prices set forth in the indenture, AMC can buy back these bonds or redeem these bonds at any time. So AMC has now raised this capital effectively not raising 325 million dollars, but raising closer to 500 million because that's the amount of debt they've just paid down.

But you might ask Tom Why is paying down this debt a good thing and why is paying dividends a good thing? Well, let's start by paying down. Debt is good. I'm a squeeze of the cow has that covered from Investopedia It says paying down debt early by exercising callable bonds saves a company interest expense and prevents the company from being put in financial difficulties in the long term. saying if AMC did in fact call back these bonds or repurchase these bonds, that would save a lot of money on whatever the remaining interest amounts would be until these bonds retired in 2026 and 2027..

AMC has effectively saved themselves three to four more years of interest repayments on these bonds. That means AMC's total interest repayments will decrease increasing AMC's profits further. Obviously, AMC has been increasing its revenues in Quarter Two, quarter three, and in quarter four and is now reducing their expenditure as well. That's going to make AMC even more profitable even faster.

and it's going to get AMC to that one billion dollar profit number even quicker. But boss sponsor's also got it covered as to why paying dividends is a good thing for AMC too, because you might ask who's responsible for paying those dividends, especially on those shorted shares and synthetically shorted checks. Now all of you investor names C But many of you also invest in other stocks and cryptocurrency and today I Want to talk about one crypto embracing the future? Bad idea AI Ticker symbol B A d Bad combines blockchain AI endows into one exciting project. It's Kryptos Hail Mary pass to Cfai can fully lead into the Golden Age What makes bad unique is its Partnerships and real world utility from nodes on Shibarium to custom AI Bot Developments bad isn't a revenue stream, it's an entire AI project.

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So that means while AMC would have to pay the dividend on 140 to 190 million shares in the float, every single share that's synthetically shorted. On top of that, it's the Shorts that have to pay that dividend that again, would likely cost them Shorts hundreds of millions, if not billions of dollars. And it's just one of those potential catalysts that we've talked about over the last two or three years that could possibly cause the squeeze. As a result, it seems Ken Griffin is aging even faster now that AMC is becoming profitable, paying down debt and reducing their expenditure suspended.

POS Tweeted this photo of Ken Griffin from yesterday saying it looks like he's aged 30 years in the last three years. Ken Griffin is looking progressively worse and progressively more stressed, knowing that he has no escape from this short position, and knowing that AMC is not going bankrupt and is now generating profits. Dana Murphy has also tweeted about the largest order imbalance he's seen since he's began checking for them, and he said the only other large imbalances that he saw at AMC was when AMC was on the regulation Sho threshold Securities list. This again, is an order imbalance of 345 000 shares on the buy side, basically saying there is zero shares available to sell, but someone wants to buy nearly half a million AMC shares which, remember, pre-split would be nearly 5 million shares.

This means even Virtue in their infinite liquidity capabilities, is struggling to fill AMC buy orders. And the reason why is because Virtue is currently being sued by the SEC and being taken to court if in the next few months, Virtue can no longer be that infinite liquidity. Theory And Supply These orders, Well, synthetic shares will be exposed and there will be no infinite liquidity fairy to meet those requirements. Now you might ask saying Tom What happens if there's no infinite liquidity fairies to fill these buy orders? So I thought I'd quickly draw this on the Whiteboard to explain exactly what Virtue is doing and exactly what happens without Virtue.

So right now you've got a buy order for 300 000 shares at around eight dollars per share. Obviously, there's no legit shareholder willing to sell shares at eight dollars per share. The closest sell order is some of those Apes may be selling a thousand dollars per share. Maybe it's not a thousand dollars.

Maybe it's five hundred dollars. Maybe it's three hundred dollars. Maybe it's even as high as five thousand dollars. By the way, there is currently a massive gap between the buy orders and the sell orders.

So what Virtue is doing is using its infinite liquidity Fair variabilities to fill that by order. Maybe they fill it eight dollars? Maybe they fill it at nine dollars. Maybe it's ten dollars. Maybe it's eight dollars, fifty, or whatever else they're effectively creating these synthetic shares to provide Market liquidity to fulfill all of these buy orders.

That's why the price of AMC isn't really going up because you've got these synthetic short sellers always here to provide this Market liquidity with their infinite liquidity variabilities. But obviously, as soon as Virtue is out the picture, you then have no one else selling shares real or fake at nine dollars per share. And that means the price of AMC then increases until the first legit sell order is found. Whether that's at a thousand dollars at 500, at 300 or a 5 000, it will continue going up until somebody's selling shares is found.

So what this is basically saying is these order imbalances are actually a good thing because it means Virtue is struggling more and more to do that their job of being an infinite liquidity fairy. And obviously, as soon as we see these order imbalances happening daily or happening hourly, that means Virtue is out of the picture and can no longer do their job. And as I said, without Virtue, there's nobody and nothing standing in the way of AMC share price increasing other than potentially hedge funds and paper handers that may sell at fifty dollars per share. maybe a hundred dollars per share, maybe 250 dollars per share, for example.

But effectively, this you know Virtue is out the way the sooner AMC can see real price Discovery I Think it will be very interesting and very exciting to see how this lawsuit against Virtue plays out. I Wonder how much money Virtue is actually gonna have to give back to all of those customers that he stole from. And it'll also be very interesting to see what happens when AMC finally starts paying dividends or even making share? BuyBacks I Wonder if AMC would do some form of of share count to differentiate between real shares and synthetic shares when they're buying back shares because obviously AMC wouldn't want to buy back actual synthetics, they'd want to buy back real shares. And finally, I also saw this tweet that I thought was very very interesting.

You may remember last week I covered the AMC short interest had increased to between 250 and 300. While Clark has just given us an update as at yesterday saying the short interest percent on AMC continues to be Sky High he said he pulled this data 30 seconds ago but obviously remember this tweet is from yesterday but it's still showing AMC's short interest nearly a 300. But guys, be sure to let me know what you think down in the comments below. And as always guys, be sure to ding that notification Bell because that way you'll be alerted when I put a new video Cheers!.