We may continue to incur rapid and substantial increases or decreases in our stock price in the foreseeable future that may not coincide in timing with the disclosure of news or developments by or affecting us. Accordingly, the market price of our shares of Class A common stock may fluctuate dramatically, and may decline rapidly, regardless of any developments in our business. Overall, there are various factors, many of which are beyond our control, that could negatively affect the market price of our Class A common stock or result in fluctuations in the price or trading volume of our Class A common stock, including:
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the ongoing impacts and developments relating to the COVID-19 pandemic;
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actual or anticipated variations in our annual or quarterly results of operations, including our earnings estimates and whether we meet market expectations with regard to our earnings;
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our current inability to pay dividends or other distributions;
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publication of research reports by analysts or others about us or the motion picture exhibition industry, which may be unfavorable, inaccurate, inconsistent or not disseminated on a regular basis;
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changes in market interest rates that may cause purchasers of our shares to demand a different yield;
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changes in market valuations of similar companies;
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market reaction to any additional equity, debt or other securities that we may issue in the future, and which may or may not dilute the holdings of our existing stockholders;
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additions or departures of key personnel;
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actions by institutional or significant stockholders;
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short interest in our stock and the market response to such short interest;
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the dramatic increase in the number of individual holders of our stock and their participation in social media platforms targeted at speculative investing;
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speculation in the press or investment community about our company or industry;
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strategic actions by us or our competitors, such as acquisitions or other investments;
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legislative, administrative, regulatory or other actions affecting our business, our industry, including positions taken by the Internal Revenue Service (“IRS”);
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investigations, proceedings, or litigation that involve or affect us;
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the occurrence of any of the other risk factors included or incorporated by reference in this Annual Report on Form 10-K; and
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general market and economic conditions.
On February 1, 2021, Dalian Wanda Group Co., Ltd (“Wanda”) exercised their right to convert all outstanding Class B common stock to Class A common stock and holds 44,042,724 shares of Class A Common Stock on March 3, 2021 based on our records and information from Wanda, all of which constitute “restricted securities” under the Securities Act. Provided the holders comply with the applicable volume limits and other conditions prescribed in Rule 144 under the Securities Act, all of these restricted securities are currently freely tradeable.
Pursuant to a registration rights agreement dated December 23, 2013, we have agreed to use our best efforts to effect registered offerings upon request from Wanda and to grant incidental or “piggyback” registration rights with respect to any registrable securities held by Wanda. The obligation to affect any demand for registration by Wanda will be subject to certain conditions, including limitations on the number of demand registrations and limitations on the minimum value of securities to be registered. We have also agreed to use our best efforts to grant certain incidental or “piggyback” registration rights with respect to securities issued to certain current and former officers.
There has been significant recent dilution and may continue to be additional future dilution of our Class A common stock, which could adversely affect the market price of shares of our Class A common stock. The risks of future dilution must also be weighed against the risks of failing to increase our authorized shares, which could adversely affect the market price of shares of our Class A common stock.
From January 1, 2020 through February 26, 2021, we have issued 398,076,109 shares of our Class A common stock in a combination of at-the-market sales, conversion of Class B common stock, conversion of