On August 4th, 2022, AMC Entertainment Holdings Inc. (AMC) announced that they will issue a special dividend for shareholders on August 19th, 2022. You can read more about this in the company’s announcement.
Wealthsimple shareholders of AMC will receive AMC Preferred Equity Units (APE) on a 1-for-1 basis. This means that for every individual share of AMC that you own, you will receive one unit of APE. This stock dividend will be distributed to holders as of the record date of August 15, 2022.
We expect to process this corporate action within our regular timelines of 1-6 business days of the effective date of the corporate action, which is August 22nd. Once processed, the stock dividends will appear in your account. At that time, you will also be able to trade the security.
Frequently asked questions
What is a Special Dividend?
A special dividend is a payment made by a company in the form of cash, shares, or both to its shareholders. A special dividend is a non-recurring dividend and is a distribution made separately from regular dividends paid out by the company if any. There are various reasons why a company might decide to pay out a special dividend including the distribution of extra cash, restructuring, or rewarding shareholders.
Can I directly register my AMC shares (withdraw) to DRS?
Ahead of AMC’s upcoming Special Dividend on August 15th, we have updated our DRS withdrawal process in the best interest of our clients. We did this because if any shares are in-transit between Wealthsimple and the transfer agent during the record date, it could cause delays in the shareholder receiving the Special Dividend.
To prevent this, Wealthsimple will temporarily stop processing all AMC DRS withdrawals from Friday, August 12th, up until Wednesday, August 24th. All pending AMC DRS withdrawal requests will resume processing again on Thursday, August 25th.
Is Wealthsimple legally allowed to pause DRS withdrawals?
Wealthsimple is a Canadian Financial Institution, which means we are governed by the Investment Industry Regulatory Organization of Canada (IIROC). We are abiding by IIROC’s rules and meeting our fiduciary duty of serving our client’s best interests in order to ensure that no shares are in transit between Wealthsimple and the transfer agent during the record date of the corporate action taking place with your shares.
Can I trade APE through Wealthsimple?
Yes, you can trade APE with Wealthsimple.