The AMC and APE *Sham* Exposed.

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following statements are an opinion

don't sue me bro holy smokes folks amc

is undertaking the most brilliant move

i've ever seen in stock market history

and it's literally designed to screw

people who just don't read the fine

print and fortunately because you're

watching this video even if you don't

invest in amc or care about amc you

should pay attention to this because not

only will you learn how to not get

screwed but you'll see why fine print is

just so critical because it plays out or

should i say will play out likely don't

sue me bro like a horror movie

but honestly this could be really good

for amc stock and really bad for people

caught on the wrong side of this uh dare

i say farce

except the ending hasn't happened yet

but uh i kind of think it will and i

want to say i guarantee it will but i

don't want to get sued but i think if

you come back to this video in six to 12

months you're gonna go holy crap

that was

brilliant buckle up now look before we

get into the horror movie we gotta hit

some good news for amc which

is actually pretty terrible news

cineworld this is background okay

cineworld on monday said they're

considering filing chapter 11 bankruptcy

now why does this matter like why would

it matter if cineworld is a filing for a

chapter 11 bankruptcy when cineworld is

obviously not amc like what difference

is there well uh here you go there uh

maybe aren't actually as many

differences and maybe that's why amc is

down like 38 today because oh crap

cineworld is pretty darn similar take a

look at this cineworld has 750 theaters

amc is 946.

screens cineworld has

9189 amc has 10 562. that's pretty close

okay amc has 31 000 employees

cineworld has 28 000 employees cineworld

has 4.83 billion in debt amc has 5.3

billion in debt so amc slightly larger

on all of those numbers

and cineworld's going bankrupt and so

this has a lot of people going oh my

gosh when you line up the metrics like

that no wonder amc is down like 38 today

because wait one of their competitors

that's pretty well similarly sized a

comp

is going bankrupt

now that's a problem now of course some

folks are going to say no kevin it's

because the ape thing got issued oh

we're going to talk about eight don't we

worry and that is not why amc is down 39

afc is down 39 in stock potentially

because attendance is actually down 39

in fact if you go into their investor

documents which i've already done for

you you can see that ending in june or

on june 30th attendance was 59 129 which

is down 39 percent from when you compare

their attendance to the 2019 document

when they had

96

955 guests in the same

quarter that shows you the substantial

39 decline in attendance

for amc movie theaters at the same time

according to the bbc box office revenue

is down 32 from 2019 and according to my

cousin who operates five movie theaters

in germany business is up from covid but

quote nothing like it used to be

now minions top gun and jurassic world

are great movies but they're just not

enough and even adam aaron the ceo of

amc has told us yeah we're going to be

pretty dry in the third quarter while

we're optimistic there just aren't that

many hits coming up

and at the same time the entire market

is being rejiggered netflix boomed and

is now stalling disney is growing like

crazy and movie theaters are just barely

crawling back from coveted lows and

still lower than in 2019

as we saw with attendance down 39

percent compared to 2019 but it's

unfortunately not just attendance that's

down of these levels and i've done this

math for us already take a look at this

admissions revenue despite inflation

down 27

food and beverage revenue down 19.5

fortunately advertising and gift card

revenue is roughly the same as it was in

2019 so that's good but food and

beverage and admissions is where most of

the money comes in now the good news is

people are spending more but it's still

not helping amc become profitable in

fact people are spending an average of

7.52 cents versus

5.58 in 2019 that's every person that

goes to the theater spending an average

7.52 cents on food and beverage you know

like popcorn and concessions that's good

news but it's mixed into a lot of bad

news especially when amc is spending a

ton of money on debt and losing money

and over fist why well first of all you

can see their free cash flow is negative

117 million dollars their net loss for

the three months ended in june was 121

million dollars and folks over

65

of the reason they're losing money like

crazy is right here debt folks they have

a melting of debt 5.3 billion dollars of

debt is very expensive it costs them

79.5

million dollars in interest

just to service their debt this is why

cineworld is like dude just stop the

bleeding stop the pain let us go

bankrupt and get rid of the debt and

this is exactly what people are worried

about amc is going to have to do to get

rid of their debt their debt is a big

problem and the fear that amc might have

to go bankrupt is dropping amc stock to

the tune of 39 today so

what is ape

and is ape the reason amc is down 38 39

today

no you're about to see one

ape is a hail mary ape is what you throw

on fourth down and at the 40-yard line

if you don't get a touchdown here use

going bankrupt this hail mary attempt is

literally the most brilliant play i have

seen in my career of studying markets

psychology stocks and real estate and

i'm about to tell you why it's in my

opinion a huge farce

which reminds me my research and my

alerts on whether or not i'm buying or

selling something or i'm dumping ape or

what i'm doing are all part of the

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course so the hail mary ape is a

dividend hail mary now a dividend is

anything that you receive a value from a

company this could be in the form of

cash or it could be in the form of a

shiny spoon of shares in some random

other company in this case amc is giving

you a shiny spoon

called ape a p e which actually stands

for amc preferred equity and for every

one share of amc ex that exists you will

get one share of ape let's take a look

at what that looks like

so on screen here you can see that on

the left we have amc shares there are

516.8 million shares of amc and as a

result you can see that there are

516 million shares of ape one dividend

share was given for every share of amc

that exists the big difference though is

that amc is actually backed by a company

that hopefully in the future gets rid of

their debt and makes money ape is

literally backed by nothing and all amc

had to do to create ape is pay some

legal and filing fees amc did not

provide any cash to ape there's

literally nothing backing ape in fact

they literally say in their disclosure

this is not a cash dividend it did not

cost amc anything so amc well other than

legal in filing fees so amc creates this

shiny spoon called ape which is

basically worthless there's there's

nothing backing ape at all and then they

happen to conveniently call it amc

preferred equity which is convenient

because the entire momentum movement

around gamestop and amc has surrounded

this idea that you want to be a diamond

handing ape hey i still own the amc

shares i promise to huddle that makes me

a diamond hand ape at least when it

comes to amc

okay now what about ape though and what

about ape is potentially a big

scam and again this is my opinion i

don't want to get sued by amc because

the reality is the better ape does the

better it is for my amc shares and

you're going to see why you just want to

be careful about ape because uh there's

something in the fine print that's kind

of scary so

ape can be used as a tool to prevent amc

from going bankrupt let me explain that

and then i'm going to show the danger

so we know that cineworld is going

bankrupt because they have too much debt

we know amc is a similar size and amc

could go bankrupt too because they have

too much freaking debt and 65

of their loss is because of interest

expense

so why not try to sell air or a

worthless shiny spoon to people

raise cash and pay down your debt in a

legal way how about you legally rip

people off and pay down your debt so you

don't have to go bankrupt and burn your

your bond holders or your shareholders

which would be ripping off the debt

holders right so what's amc doing amc

creates

ape and what amc wants is ape to go to

the moon because if ape goes to the moon

10 15 whatever amc can start dumping

millions of shares

and the cash that amc raises when they

dump millions of ape shares

will go to pay down amc debt which is

absolutely brilliant and folks this this

isn't like a big secret they literally

literally tell you this this is in their

last filing and you can see here amc uh

says that amc preferred equity units or

ape will provide amc with a currency

that can be used in the future to

strengthen our balance sheet including

debt repayments and provide capital for

shareholder value enhancing and

transformative investing opportunity in

other words ape is literally

a nothing currency they created just to

try to raise money to pay down their

debt very very very very smart okay but

how are they tricking people like

where's the sinister aspect here because

so far this doesn't seem bad but what

you want to remember is the more ape

goes up the less debt amc has so if

you're an amc shareholder you want ape

to go to the moon but you don't want to

own ape you probably don't know don't

get me wrong ape could go to the moon on

momentum

but it's worthless there's nothing

backing it literally nothing now

you might be saying wait a minute kevin

wait a minute ape shares are worth

something

in fact kevin i'll have you know that

ape shares are convertible to one amc

share

and ape shares have the same voting

rights as amc shares

i mean that after all is what this form

says kevin did you did you not read this

form right here that tells you you have

the same right to one vote per share

and that it could be converted to an amc

share which basically in that case means

that if i could buy an ape share for

seven dollars and 31 cents i'm basically

able to get a cheaper version of amc

which amc is trading for 11 and 14 cents

right so why not buy the ape if i could

just turn that into amc in the future

[Laughter]

because you're getting screwed and you

didn't actually find print this is where

we need that tick tock music

but i'm too lazy to edit it

so

this is the thesis and let me show you

where it falls it apart where it all

falls apart

ape is backed by nothing and people

believe that because they have one vote

that equals amc votes and they're an

equal amount of shares obviously the ape

shareholders are going to vote to

convert to amc because they would be

going from something that's literally

worthless to having ownership in an

actual company

that makes sense i would if i was an ape

shareholder i would absolutely vote to

convert to amc

[Laughter]

oh but this is where the fine print is

just so glorious so glorious

are ape units convertible into common

stock if so when like listen to this

qualification well technically yes they

literally write

technically yes okay okay but wait for

the killer here wait for the killer

but only if the amc board proposes and

then investors vote to increase the

number of authorized shares of common

stock

now

if that didn't make sense to you let me

make it very very simple

amc shareholders in the past have

already refused shareholder dilution to

allow amc to shell sell shares on the

open market because it would dilute

shareholders it would raise cash for amc

but shareholders said we don't want you

to do that so amc shareholders already

voted no to this once before

ape shareholders obviously are gonna

vote yes on this

but wait a minute folks it isn't even

gonna go to a freaking vote

why isn't it even gonna go to a freaking

vote because it literally says

only if the amc board proposes it and

the amc board has a responsibility to

amc shareholders not to ape shareholders

the amc shareholder board has the duty

the fiduciary duty to make sure that amc

shareholders are protected so the board

is literally going to refuse to even

bring this up for a vote

that's the trick

so

like think about it why would the board

of amc dilute valuable amc shares for

these worthless ape shareholders and

shares it makes no sense they won't

because amc knows what they're doing

they're selling you air they're selling

you thin air they're selling you a shiny

spoon called

ape and it's worthless the ape or i'm

sorry the amc board would be moronic and

would get sued to oblivion they would be

so stupid to let ape shareholders

convert their shares to amc shares

because it would immediately dilute aimc

shareholders by 50

amc would plummet

in the meantime amc is selling ape

holders hopium that maybe amc

shareholders

could let ape shareholders in in the

future through conversion but again only

if the board proposes a vote for this

which they won't do it's so obvious in

the meantime amc shareholders and the

board are hoping for a rally on ape

stock the more ape rallies the more amc

can dump this thin air and sell it to

people remember as of the initial filing

amc raised zero dollars from ape

but if ape stabilizes and then all of a

sudden amc says hey we're selling a few

million dollars of ape

well now amc slowly starts to get rid of

their debt it's a brilliant move here's

how that could look

look on screen now

if amc sells ape or thin air

which they can sell up to 484 million

shares of it in 2022 or 2023

but if they change their mind they could

sell all the way up to 400 or sorry

4.484 billion shares whatever proceeds

come from that help amc prevent

bankruptcy so for example if they sell

484 million shares at 10 of ape amc

almost wipes out their debt they raise

4.84 billion dollars by giving people

nothing just hope it's brilliant if ape

goes from seven dollars all the way down

to a dollar and amc is just like let's

just sell all 4.484 billion that we can

still share sell

then they will also raise 4.84 billion

dollars and so it's my belief that amc

is going to dump a token over and over

and over and over and over again until

it's basically worth zero and when it's

worth zero they won't propose a vote to

let ape shareholders come over to amc

they'll take all the cash pay off their

debt prevent bankruptcy and this will go

down as the greatest farce in stock

market history ever oh but folks you

could get an nft of your ape token

because it's just as freaking worthless

that's literally what their documents

say you could read it yourself but i

just gave you the summary of it and i

just showed you a little screenshot of

that document

so let's make this very very clear

ape is a ploy it is a ploy to hope that

meme stock traders pump up ape stock to

the moon so that way there's a sustained

market amc can dump shares raise lots of

money and pay off their debt

and again if you want a free nft to

showcase how stupid it is to hold your

ape shares make sure to go to the amc

investor connect website and get your

free nft because let me tell you

ape shares are going to be worth as much

as that nft is going to be worth

zero in six to 12 months i expect tip

ticker symbol ape will be worth one

dollar or less that would be an 86

decline from today and it'll be

worthless and delisted soon after that

the hope is that amc will have paid off

all of their debt before ape becomes

worthless

but until 8 becomes worthless amc will

continue to use it as a free money

printer and this is a brilliant farce