Today I Want to talk about the AMC conversion and reverse split just announced by Adam Aaron I'll explain exactly what's going to happen to your shares I Want to talk about the various different reasons as to why this is a good thing? but I do want to touch on some of the negative reasons as to why it could be a bad thing. So stay tuned and let's make some money. And now I'm going to dive straight in with the key information. so you may have seen Adam Aaron's tweet saying also Apes worked exactly as intended to let us raise needed cash, buy back debt, and explore mergers and acquisitions.

He said about a huge discount and Arbitrage opportunity in the eight market price versus the common stock must be addressed. We'll hold a shareholder vote. It's time to convert eight Preferreds into AMC Common To eliminate that discount, you know I Think this part here of eliminating the discount is very, very important, which I'm going to touch on some later with some workings out as well. He also followed up by saying also a company is distinguished as AMC couldn't let Wall Streeters wishing us harm drive us to being a penny stock.

So in the shareholder vote, you can also consider a one for ten reverse stock split. Simple arithmetic. If approved, the share count goes down so the share price goes up. Now this has a double benefit of AMC avoiding becoming a penny stock and avoiding falling below two dollars or one dollar and being delisted.

but it also acts as a form of a share count as all of the shares will be recalled and the float reduced. but again, that's something I'd touch on later as the Q-sip numbers will be changing during this reverse split. But as I said, touch on it later now. Adam Also doing to seeing such important AMC news, we succeeded in raising another 110 million dollars of equity.

Capital That's 272 million of new cash in 90 days. He's also arranged to get 100 million dollars of debt converted into Equity at a substantial discount. AMC is in a much stronger catch position now. so AMC has raised 110 million dollars of new capital through the sale of Ape units to Antara.

Capital LP This is in addition to the 172 million dollars worth of eight shares that was sold over the last 90 days to individual different investors. and he's also reduced debt by a hundred million dollar principal amount of a Second Layer note due 2026 currently held by Antara as well in exchange for approximately 91 million Ape units. Now I think this may actually be the majority of the Ape units now sold. 110 million dollars of Ape at 66 cents per share is around 200 million shares.

On top of that, you've got 91 million shares here. and obviously AMC just raised 172 million dollars. I think selling off somewhere between 100 and 200 million shares. So that's what.

490 million AP units in AMC had also previously sold off around 25 million. Apes So that's the entire 516 million new Apes sold. So I Think there's now a circulating supply of a billion Ape units when all is totaled up together. but Adam is also seeking a special shareholder meeting to vote on The Following AMC Board of Directors proposals to convert Ape into AMC common shares.

which means there's around a billion and a half AMC shares and then to reverse split the number of AMC common shares at a 1 for 10 ratio. so there'd be around 150 million AMC shares in total now. I Think this is important to remember that your apes are first going to convert to AMC common shares and then your total number of AMC common shares will be reduced in a 1 for 10 ratio. Your rates aren't being reversed split and then converted into AMC after your AMC isn't being reversed split and then 8 converted into that after no.

Instead, your apis converting to AMC first and then everything together is then being reduced by this reverse split. Now NATO's tweet is saying it's too easy you eat market cap or the market value is 8 billion dollars. The AMC market cap is only 2 billion. He therefore said, bringing Ape back into AMC makes it worth 10 billion dollars in total.

AMC will again be worth 10 billion dollars around five times what it's currently worth. You said a reverse split boss is a share count. 517 million shares reduces down into 51 million obviously. then you have to add the billion of Vape shares on top of that.

So there's around 150 million shares total. But he said the hedges can't locate shares now and therefore how will they do it with almost 5 500 million less shares? You may say Tom aren't these Ape shares being converted into AMC shares and therefore these Hedges will have a billion new shares they can use as full slow case or after the reverse split 100 million new shares. But don't forget we are holding the majority of those Ape shares and therefore we'll still be holding the majority of AMC shares after the reverse split and after the conversion. If anything, we own a larger percentage of the eighth float than compared to the AMC float.

So if anything, this will actually make it harder for these Shorts to actually locate Real AMC shares. Now this is where it gets really, really interesting. Nate Tweeted saying research time Ape is the number one stock port today. AMC is the number three stock and that's from Yahoo He said.

but look at the market cap for Ape, it's 8.6 billion or 6 billion 880 million shares at a 1.1 dollar per share ratio. He said wasn't Ape given on a one for one basis. How did that happen? How is Apes Supposedly got 6 billion actual shares existing now? I Think that really is due to the significant number of Ape synthetic shares that have been created over the last few months. Even at weighing the number of AMC synthetics created, That's how these shorts pushed eight down from ten dollars to below one dollar so fast.

They didn't just create a billion or two billion synthetics, they created maybe 6 billion or even more. You may say Tom when the Ape Shares are converted into AMC shares, Is it going to expose these hundreds of millions if not billions of synthetic Ape shares during the conversion? I Would like to Hope and say yes, but what we've seen recently is even during share conversions during reverse splits during special dividends, it still yet hasn't exposed the true number of synthetic shares. But what I think this Ape to AMC conversion will do is massively suck up the available margin that many of these hedge funds have, which is dwindling day by day. Don't forget, Ape is converting to AMC on a one for one basis.

This means a 60cm 10 or a one dollar stock is converting into a five dollar stock. This means the Hedge fund's short position is about to increase by five times overnight. For example, let's assume these hedge funds are shorting one billion synthetic EMC shares. One billion synthetic AMC shares at five dollars per share is around five billion dollars.

Now we know the hedge funds had to short more Ape shares to drop the price so fast and try and scare retail investors into selling their Ape shares Therefore, let's assume they're shorting three billion eight shares. Maybe that number's even higher. Maybe it's six billion. or maybe it's even higher than that.

But 3 billion synthetic shares being shorted at a dollar per share or one dollar twenty per share, which is the closing price today is only 3.6 billion dollars. Therefore, these hedge funds have been shorting three times as many Ape shares, but it's only cost them slightly over half of the price that it costs them to short those billion AMC synthetics. But now what happens when these three billion ape synthetics convert into 3 billion AMC synthetics? Well, all of a sudden overnight, they're three billion Ape short. Position worth 3.6 billion dollars, increases overnight to 3 billion AMC Shorts Worth 15 billion dollars.

That is an overnight increase of 11.4 billion dollars. These hedge funds all of a sudden have to find that will dig into their margin requirements, potentially causing them to fail these margin calls. We especially know these hedge funds are short on margin, especially over the last few days when the S P 500 has been falling and especially over the last year as the S P 500 is down over 20. That's trillions and trillions of dollars that have been wiped out from the S P 500.

Now, very interestingly, Biggums has tweeted a story in two parts about how the Shorts actually located shares for their Ape Shorter Now Fidelity Originally tweeted safe thanks for reaching out. If a person with short one share of AMC on the X dividend date on August 22nd when Ape was released, then be sure one share of AMC and one share of Vape on August the 23rd. But however, shareholder Equity Remains the Same since there is no share locate requirement related to a special dividend. Therefore, when Ape was originally released, there was no share locate requirement originally.

when these aims, he shares were split off and the dividend for Ape issued. Therefore, these shorts weren't forced to close out of their AMC short positions when Ape was originally issued and there was no original share locate requirement. But TD Ameritrade has confirmed on the conversion of eight back into AMC that there is now a share okay requirement and shorts will be forced to close on TD Ameritrade They said Ape is a marginal security that is in our Htb or hard to buy a program for shorting. If there is a specific date the reorganization is going to happen and depending on what the reorganization is, we would reach out to the short positions and ask them to close those positions the day before the reorganization takes place at the latest.

Now, the Ape is being converted back into AMC which is not a special dividend. There is now a share locate requirement and anybody shorting Ape must locate real shares. Obviously, anyone currently shorting Ape must locate AMC shares on a date of the actual conversion. That's why there's this new share locate requirement and that's why TD Ameritrade will be asking Ape shorts to close out before the conversion or during the conversion now that I think is really, really important.

Not only is there short position going to increase by five times their current position, but they also have a new share locate requirement and they don't have the advantage of having those FTX synthetics or FDX tokenized Securities that they can use for those false locates. Boogum's also Twitter saying other splits haven't worked, but other splits didn't have an entire movement behind them, which this stock is literally named after. Obviously, we've seen over the last few weeks a number of different reverse splits on Cosm and a number of different entities like Mmtlp going private or splitting off and combining with a completely new company. but the main difference is that the stocks were small OTC penny stocks and didn't have an entire AMC 8 movement behind them.

If you see tweetsing Mmtlp people, AMC is not going private, it's just a conversion which is two completely separate things. MMA Tnmtlp got halted prior to going private for diesel so which won't happen to AMC as AMC is not going private. but I did also want to quickly mention and quickly touch on some potential downsides. Penny Barons We're saying in case you have any doubts whether the Ape to AMC conversion will pass, it says as part of that new share sale agreement as part of the agreement and Tara has agreed to hold their Ape units for up to 90 days and vote them at the special meeting in favor of the proposals.

So that's what: 290 million shares that are guaranteed to say yes to the eight to AMC conversion and say yes to the reverse split. Now obviously, if this hedge fund has brought up nearly 300 million Ape shares, they obviously want the conversion to go ahead, which just seems a little bit sketchy. Jeremy The CEO of Crtd also tweeted saying as a CEO or empathize, but it's gone Far Beyond Simple Arithmetic He said a reverse stock split doesn't benefit shareholders because it doesn't change the market cap or the fundamentals, but he said it does expose the stock to further naked shorting and more room for the stock to drop. And he said CEOs need to unite as a block against naked shorting.

I Haven't yet fully digested as to whether the Ape to AMC conversion and the reverse split is a good thing or a bad thing and I think it's going to take a few more days for all of the DD to be done. but I Do hope this video has at least given you some ideas as to whether the Ape to AMC conversion is a good thing and I hope it's answered some of your questions. 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 upload a new video.

Cheers!.