Shares of AMC Entertainment (ASX:AMC) tumbled 12% to $2 in premarket trading.

Over the past two days, the company’s stock has plummeted by approximately 42%, closing at its lowest level since January 2021.

This decline has erased all of the gains from the meme stock frenzy, when retail traders heavily bought shares of highly shorted companies.

Concurrently, AMC’s preferred stock ‘APE’ plummeted 5.9% to $1.8 after nearly an 18% fall in the past two days.

The gap between APE and AMC has been decreasing ahead of the stock conversion plan set for Friday.

All APE preferred shares will be converted into Class A common shares, thereby diluting the value of each common stock.

Class A common shares will rise to 550 million from 524.2 million, and APE will cease trading on Aug.

25 and be delisted from the NYSE.

AMC will also distribute stock valued at about $129 million to common stockholders to settle possible legal claims connected to this plan.

A 1-for-10 reverse share split is scheduled to occur on Thursday.

Year-to-date, AMC shares have fallen 37.3%, while APE shares are up 33.3%.

AMC Entertainment (ASX:AMC) is a leading company in the entertainment industry, offering a variety of cinematic experiences.