How might this corporate action impact institutional ownership and the ability of large investors to hold AC shares?

The voluntary NY NYSE delisting and subsequent deregistration will push AC’s Class A shares from a regulated exchange to the OTCQX market, a venue that is far less liquid and has looser reporting requirements. Institutional investors—mutual funds, pension plans, and sovereign wealth funds—are typically mandated to hold only “registered” securities that trade on a national exchange and to report their holdings on a quarterly basis. Once AC moves to OTCQX, many of these investors will be forced to either sell out of the position or re‑classify the holding as a “non‑listed” security, which often triggers internal compliance reviews and can lead to a reduction in the institution’s reported ownership stake.

From a market‑structure perspective, the loss of a NY SE ticker removes the automatic visibility and market‑maker support that large investors rely on for efficient execution. The OTCQX quote‑driven environment usually features wider bid‑ask spreads, lower daily volume, and a higher probability of price impact when executing sizable blocks. Consequently, any institution that wishes to maintain a meaningful position will face higher transaction costs and may have to use “dark‑pool” or negotiated‑trade venues to avoid moving the market. In practice, many large investors will either unwind their positions before the September 4 cut‑off or limit future purchases to a modest “core” allocation, effectively capping institutional ownership at a lower level than the pre‑delisting levels.

Trading implications:

- Short‑term: Expect a sell‑off from institutions ahead of the Form 25 filing date (early September) as they liquidate or trim exposure, which could depress the share price and increase volatility.

- Mid‑term: Post‑delisting, the reduced float and thinner OTCQX liquidity will likely compress the price range, making the stock more prone to larger swings on modest volume—an environment that favors speculative, short‑term traders rather than long‑haul institutional holders.

- Actionable tip: If you are a retail or discretionary trader, consider positioning short on the near‑term decline (e.g., using a tight‑‑stop‑loss sell order) and, if you still wish to hold AC, be prepared to accept higher execution costs and potentially lower long‑term ownership levels. Large‑cap investors should treat AC as a “non‑core” position and limit exposure to a few percent of portfolio capital until a clear liquidity‑improvement plan is announced.