IMAX Corporation Responds to Letko's Statement on the Proposed Privatization of IMAX China
NEW YORK, Sept. 25, 2023 /PRNewswire/ -- With reference to the announcement made by Letko, Brosseau & Associates Inc. (Letko) on September 22, 2023 stating its intention to vote against the take private transaction, IMAX Corporation reiterates its belief that the transaction is in the best interests of IMAX China shareholders and represents a compelling offer. While IMAX China's first half results are encouraging reflecting both theatre re-openings and increased box office market share, IMAX China's share price continued to exhibit weakness and its trading volume hit all-time lows throughout 2023 prior to the proposed privatization transaction despite market awareness of IMAX China's results through weekly box office reporting and the first quarter results released by IMAX Corporation on April 27, 2023.
IMAX China's volume weighted average price for the 30 and 90 full trading days prior to the transaction announcement was $6.46 and $7.50. We believe that major contributory factors to the historical share price weakness are a lack of trading liquidity, low institutional ownership and declining research coverage – all of which will remain unchanged should the transaction fail to receive shareholder approval. The proposal provides IMAX China shareholders with HK$10.00 per share in cash, which could be reinvested in IMAX Corporation's shares for those shareholders interested in participating in the company's continued growth in China.
The transaction was reviewed and approved by the Independent Board Committee ("IBC") at the recommendation of the Independent Financial Advisor ("IFA"), who concluded the transaction terms are fair and reasonable. The full IFA letter is contained in the scheme document jointly issued by IMAX China and IMAX Corporation on September 15, 2023, with a few key highlights as follows:
Finally, IMAX China has confirmed that it will not declare or pay any dividends before 31 December 2023, and there is no guarantee that IMAX China will declare or pay any dividends after such date.
About IMAX Corporation
IMAX, an innovator in entertainment technology, combines proprietary software, architecture, and equipment to create experiences that take you beyond the edge of your seat to a world you've never imagined. Top filmmakers and studios are utilizing IMAX systems to connect with audiences in extraordinary ways, making IMAX's network among the most important and successful theatrical distribution platforms for major event films around the globe.??Streaming technology company SSIMWAVE, an IMAX subsidiary, is a leader in AI-driven video quality solutions for media and entertainment companies.
IMAX is headquartered in New York, Toronto, and Los Angeles, with additional offices in London, Dublin, Tokyo, and Shanghai. As of June 30, 2023, there were 1,718 IMAX systems (1,638 commercial multiplexes, 12 commercial destinations, 68 institutional) operating in 87 countries and territories. Shares of IMAX China Holding, Inc., a subsidiary of IMAX Corporation, trade on the Hong Kong Stock Exchange under the stock code "1970."??
IMAX®, IMAX® Dome, IMAX® 3D, IMAX® 3D Dome, Experience It In IMAX®, The IMAX Experience®, An IMAX Experience®, An IMAX 3D Experience®, IMAX DMR®, DMR®, Filmed For IMAX™, IMAX LIVE™, IMAX Enhanced™, IMAX nXos®, SSIMWAVE® and Films to the Fullest®, are trademarks and trade names of the Company or its subsidiaries that are registered or otherwise protected under laws of various jurisdictions. For more information, visit www.imax.com. You may also connect with IMAX on Instagram (www.instagram.com/imax), Facebook (www.facebook.com/imax), Twitter (www.twitter.com/imax), YouTube (www.youtube.com/imaxmovies) and LinkedIn (www.linkedin.com/imax).
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SOURCE IMAX Corporation