Today I Want to talk about how the AMC lawsuit has finally been thrown out? I Want to explain how and why it was thrown out or settled, what will actually come of that settlement? how that impacts you and I and finally what this means for the reverse split and for the aims you squeeze. So stay tuned and let's make some money. And now I'm gonna dive straight in with the key information. So Biotech Moose has given an excellent explanation and simplification of today's Form 8K Item 801 regarding AMC settling the Ali Jenny class action lawsuit.

So it starts by saying on April 2nd, 2023 AMC reached a settlement with the Allegheny class action lawsuit. This settlement will lift the status quo that was stopping AMC from proceeding with the reverse split and with the conversion and once lifted the previously approved a vote, actions can move forward. The float will be increased to 550 million AMC shares in total and the conversion of ape to AMC will occur and the 10 for One reverse split will take place. This is the final settlement needs to be approved by the core, uneffectively accepted and approved by Ali Journey which they've done later on in this video.

So as part of the settlement, all AMC shareholders not just shareholders and that Ali Journey class action lawsuit receive a settlement of AMC shares not a cash settlement. So it says everyone as of March 31st the date of record AKA everyone including you and I holding AMC common shares. we'll get the one share per 7.5 shares after the reverse split and conversion again I'm going to touch on this a little bit later on in the video and explain exactly how that works and exactly what you're receiving. Post reverse split, an additional 6.9 million shares will be divided by all of the shareholders as part of the settlement.

So it says in today's value, the settlement is 69 million shares pre-split multiplied by four dollars per share is 276 million dollars. But obviously the actual settlement price will depend on the AMC share price at the time of the reverse split and the conversion. Taking the number of Ape shares in consideration at the time of reverse split and settlement, the payment represents 4.4 percent the converted reverse split flow. Basically, as part of this settlement, to get rid of the lawsuit, Adam Aaron has had to dilute the AMC Float by an extra 4.4 percent just to get rid of these forever shorts.

And it says the timing of these events depends on when the status quo is lifted by the course. but AMC will keep us updated with the timeline that leads our hands. Started by saying to everyone is asking why AMC would actually settle a frivolous lawsuit for hundreds of millions of dollars. He said it's because it's extortion.

He said the longest stupid thing drags on. The longer it takes for AMC to raise cash, the longer it takes for the reverse split and conversion, the longer it takes for this new Qcip ID number to come through. And obviously this cash frame C could be used to buy Cineworld or for other mergers and acquisition activities. It could be used to buy new Cinema locations or New Town vending machines Richard is saying unfortunate.

Actually, that's how it goes in the real world. He said AMC paid them to go away as it's worth more to AMC not to be tied up in legal battles for potentially multiple years and to get the work done now and move forward with the plan. So basically how this is all going to work is there's currently around 519 million AMC shares after the reverse split that converts down to around 51.9 million. After that, AMC is going to issue an additional 6.9 million shares for free off their own backs to all of us including you and I and including the Ali Jenny lawsuit.

Shareholders 6.9 million shares is 51.9 million shares after the reverse split at a ratio of one share for every 7.5 shares held. and then when you're adding the Ape shares on top of that of which, there's around 900 million Ape shares. But after the split is going to be around 90 million Apes which will convert into AMC giving a total AMC flow of 156 million shares that includes the Apes that convert into AMC that AMC shares. They'll obviously both go through the reverse split and then the additional 6.9 million shares issued for free by AMC for the settlement.

But in terms of exactly how that works for you and I Let's say right now you're holding 150 AMC shares and 158 shares. after the 10 for One reverse split, you'll be holding 15 AMD shares and 15 ape shares as part of the settlement. For every 7.5 AMC shares you hold, you get an extra one AMC share. Meaning if you're holding 15 AMC shares, you get two new AMC shares.

Meaning you're then holding 17 AMC shares and 15 Ape shares. Obviously the Ape thing gets converted into AMC shares as well. meaning you have 32 AMC shares. So 150 AMC and 158 shares will convert down to 32 AMC shares and a stock sense.

Frank Confirmed He said I'm not a lawyer, but in law terms we are the the plaintiff's case. He said the filing described the pontiffs as the shareholders, not just a select group or funds or individual shareholders. He said I think in other words Apes will be getting a payout from AMC but also to the group who are suing AMC as well. He said I don't know if they're planning on keeping any of those shares or have kept any or will be selling them as soon as they receive them.

But basically everyone receives an additional share for every 7.5 shares of AMC that they hold after the split. But the interesting part is that Shorts actually have to cover these dividends. Obviously, AMC is giving out these shares for free and therefore for every synthetic share created AMC won't be giving out any extra shares. Therefore, the Shorts have to reach into their own pockets and give out an extra AMC share or money worth of an AMC share for every 7.5 synthetic shares that you hold.

And he said, shorts after cover dividends not stop splits. He said even if the stock split was delivered via a dividend because a dividend is something of additional at you value, the hedges have to give. whereas a stock split there is nothing of actual value as the stock value is simply divided by the new number of shares. but again, because additional Shares are being given out as part of the settlement, that's going to have to be covered by these hedge funds and by these shorts.

So that's actually quite an interesting tidbit that this actually is going to cost the shorts money, and it's not just going to cost AMC Now obviously, as a result of this news, we saw the shorts trying to push the price of AMC down and the price of AMC up. In the after hours. Yesterday we saw AMC down 22 and 8 up 22 on the flip side. but what was really interesting is the volume on those trades was absolutely tiny.

Only 640 000 shares for AMC and 640 000 shares for Ape. Again, it shows clear manipulation as the price of AMC was pushed down 22 on only 640 000 shares of volume, something we can do in the trading hours in a singular minute. Vegetable said overall he believes it's a good move by Adam Aaron He said Adam was sued by this group of shareholders or by this group of Shorts that were delaying the reverse split and he said Adam actually managed to get us additional shares and pay off the shorts at the same time. Sure increases the flow a bit, but not too much under 7 million shares.

He said AMC doesn't have to spend any cash on hand to pay off these shorts. The dilution is also fairly minimal and now we can proceed with lowering the flow overall to 156 million shares. I think overall it's a good result for AMC it's obviously a result for Ali Journey but it's also a good result for us because we get some free additional shares as well. But what I do think it does show is how frivolous this lawsuit was and how ALU Journey is absolutely funded by the shorts.

Ali Jenny Have just posted an unopposed motion to lift the status quo order due to the party's proposed settlement. So basically Ali Jenny started this lawsuit, but they're perfectly happy to accept this settlement as long as they get some free additional shares issued, they don't care about being compensated in cash, they don't care about stopping the reverse split. they just wanted some free additional shares. obviously previously under the conversion and reverse split.

there'd be no additional shares issued, they'd just be converting ape into AMC and reducing the size of the flow. But now with this settlement, there's an extra 7 million shares, which obviously isn't great as it is additional dilution, but it's fortunately not a significant amount of dilution. But what I believe it means is the Shorts funding allergenic likely had a 7 million share short position that they were desperate to cover at cheap prices. They didn't want to allow the reverse split to go through causing the squeeze where they'd have to cover those seven million shares at Sky High prices.

Therefore, they're actually perfectly happy for the reverse split to go ahead and for the conversion to go ahead as well. They just needed 7 million free shares to be issued so they could buy those shares on the cheap, closing out of their short position or being given those shares for free so they could close out of their shorts. Overall, I'm also glad this frivolous lawsuit is finally gone and is finally dealt with, especially as Anna Jenny have actually accepted the terms of the settlement. It's annoying that it does increase the float by an additional 7 million shares and give some of these Shorts free shares as well to close out of their short positions.

but obviously seven million shares is nowhere close to enough to allow all the Shorts to close out of their positions for free. Seven million shares is obviously only the tip of the iceberg on the billions of synthetic shares that have been created. Therefore, what it likely allows one small fund to escape unscathed. What it does not allow is these big Short Selling hedge funds to escape the squeeze.

If anything, The Squeeze is absolutely still on. and if anything, The Squeeze Timeline has actually been accelerated. 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!.