A major Chinese investor in AMC Entertainment Holdings Ing (NYSE: AMC) has converted its shares in the cinema operator to sell them, according to documentation from the US Securities and Exchange Commission.
What happened: Wanda America Entertainment Inc., a unit of the Wanda Group in Beijing, on February 1 converted its Class B ordinary shares into AMC Class A shares ‘to enable the sale of its ordinary shares’, according to the submission.
No details on how much stock was converted were provided in the SEC document.
In May 2012, the Chinese conglomerate acquired a majority stake in AMC for $ 2.5 billion.
Why it matters: According to the latter’s website, AMC is still a subsidiary of the Wanda group.
The theater chain with GameStop Corp. (NYSE: GME), Blackberry Ltd (NYSE: BB), and Nokia Oyj (NYSE: NOK) are targets of r / WallStreetBets, a Reddit forum that has been under short pressure over the past few weeks.
The short print has caused institutional short sellers such as Melvin Capital and Citron Research to suffer losses as they cover their shorts.
The Reddit investors received support from celebrities, investors and others like Mark Cuban, Dave Portnoy, Tesla Ing (NASDAQ: TSLA) CEO, Elon Musk, and others.
See also: Dave Portnoy invests $ 700,000 in AMC again after leaving all ‘Meme shares’
In late January, AMC shares soared as much as 804% at one point. The stock is on a YTD basis more than 200% from Friday’s close.
Price action: AMC shares closed nearly 3.7% lower at $ 6.83 on Friday and rose nearly 0.6% in the after-hours.
Read the following: AMC investigates another inventory sale amid Reddit-fueled rally: Report
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