NEW YORK, June 25, 2021 /PRNewswire/ -- IMAX
Corporation (NYSE: IMAX) today announced a 12-month extension to
the Company's share-repurchase program through June 30, 2022. The current share-repurchase
program authorized the Company to repurchase up to $200 million of its common shares, of which
approximately $89.4 million remains
available, and was set to expire on June 30,
2021.
The Company has repurchased a total of approximately 6 million
of its common shares for an aggregate purchase price of
approximately $110.6 million pursuant
to the current share-repurchase program since it commenced on
July 1, 2017. With this extension
effective July 1, 2021, the Company
remains authorized to repurchase up to approximately $89.4 million worth of common shares through
June 30, 2022. In light of the
current operating environment, the Company does not currently
intend to repurchase shares.
Repurchases to date by the Company pursuant to the current
share-repurchase program have resulted in an approximately 9% net
reduction in shares outstanding since the program began on
July 1, 2017.
Repurchases under the Company's share-repurchase program may be
made either in the open market or through private transactions,
subject to market conditions and applicable legal requirements.
IMAX has no obligation to repurchase shares, and the
share-repurchase program may be suspended or discontinued by the
Company at any time. In addition, the $200
million authorization does not include shares repurchased in
connection with the administration of employee share-based
compensation plans.
Canadian Securities Law Exemption
The Company has received an exemption decision issued by the
Ontario Securities Commission dated May 21,
2020 for relief from the formal issuer bid requirements
under Canadian securities laws. The exemption decision permits the
Company to repurchase up to 15% of its outstanding common shares in
any 12-month period through the facilities of the New York Stock
Exchange ("NYSE") under repurchase programs that the Company may
implement from time to time. Canadian securities laws regulate an
issuer's ability to make repurchases of its own securities.
The decision allows the Company to make repurchases under its
repurchase programs from time to time in excess of the maximum
allowable in reliance on the existing "other published markets"
exemption from the formal issuer bid requirements available under
Canadian securities laws. The "other published markets" exemption
caps the Company's ability to repurchase its securities through the
facilities of the NYSE at 5% of the issuer's outstanding securities
during any 12-month period.
The conditions of the exemption decision are as follows: (i) any
repurchases made in reliance on the exemption decision must be
permitted under, and part of, repurchase programs established and
conducted in accordance with United
States securities laws and NYSE rules, (ii) the aggregate
number of common shares acquired in reliance on the exemption
decision by the Company and any person acting jointly or in concert
with the Company within any period of 12 months does not exceed 15%
of the outstanding common shares at the beginning of the 12-month
period, (iii) the common shares are not listed and posted for
trading on an exchange in Canada,
(iv) the exemption decision applies only to the acquisition of
common shares until March 25, 2022,
and (v) prior to purchasing common shares in reliance on the
exemption decision, the Company discloses the terms of the
exemption decision and the conditions applicable thereto in a press
release that is issued and filed on the System for Electronic
Document Analysis and Retrieval and includes such information as
part of the news release required to be issued in accordance with
the "other published markets exemption" in respect of any
repurchase program that may be implemented by the Company, which
this press releases satisfies.
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 theaters to connect with audiences in extraordinary ways, and,
as such, IMAX's network is among the most important and successful
theatrical distribution platforms for major event films around the
globe.
IMAX is headquartered in New
York, Toronto, and
Los Angeles, with additional
offices in London, Dublin, Tokyo, and Shanghai. As of March
31, 2021, there were 1,652 IMAX theater systems (1,567
commercial multiplexes, 12 commercial destinations, 73
institutional) operating in 84 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®, IMAX nXos® 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. More information about the Company can be found at
www.imax.com. You may also connect with IMAX on Instagram
(https://www.instagram.com/imax), Facebook (www.facebook.com/imax),
Twitter (www.twitter.com/imax) and YouTube
(www.youtube.com/imaxmovies).
Forward-Looking Statements
This press release contains forward looking statements that are
based on IMAX management's assumptions and existing information and
involve certain risks and uncertainties which could cause actual
results to differ materially from future results expressed or
implied by such forward looking statements. These forward looking
statements include, but are not limited to, references to plans
regarding share repurchases pursuant to the share-repurchase
program or regarding the planned filing for and receipt of an
extension of the current exemption decision beyond March 25, 2022, business and technology
strategies and measures to implement strategies, competitive
strengths, goals, expansion and growth of business, operations and
technology, future capital expenditures (including the amount and
nature thereof), industry prospects and consumer behavior, plans
and references to the future success of IMAX Corporation together
with its consolidated subsidiaries (the "Company") and expectations
regarding the Company's future operating, financial and
technological results. These forward-looking statements are based
on certain assumptions and analyses made by the Company in light of
its experience and its perception of historical trends, current
conditions and expected future developments, as well as other
factors it believes are appropriate in the circumstances. However,
whether actual results and developments will conform with the
expectations and predictions of the Company is subject to a number
of risks and uncertainties, including, but not limited to, the
impact of COVID-19 on the Company's business, financial conditions
and results of operations and on the business of our customers and
exhibitor partners; risks associated with investments and
operations in foreign jurisdictions and any future international
expansion, including those related to economic, political and
regulatory policies of local governments and laws and policies of
the United States and Canada; risks related to the Company's growth
and operations in China; the
performance of IMAX DMR® films; the signing of IMAX Theater System
agreements; conditions, changes and developments in the commercial
exhibition industry and broader entertainment industry, including
both the in home and out of home entertainment markets; risks
related to currency fluctuations; the potential impact of increased
competition in the markets within which the Company operates,
including competitive actions by other companies; the failure to
respond to change and advancements in entertainment technology;
risks relating to consolidation among commercial exhibitors and
movie studios; risks related to new business initiatives that may
be presented to and pursued by the Company; risks related to
cyber-security and data privacy; risks related to the Company's
inability to protect the Company's intellectual property; risks
related to the Company's indebtedness and compliance with its debt
agreements; general economic, market or business conditions; the
failure to convert IMAX Theater System backlog into revenue;
changes in laws or regulations; the failure to fully realize the
projected cost savings and benefits from any of the Company's
restructuring initiatives; assumptions related to the foregoing;
other risks outlined in our periodic filings with the SEC; and
other factors, many of which are beyond the control of the Company.
Consequently, all of the forward looking statements made in this
press release are qualified by these cautionary statements, and
actual results or anticipated developments by the Company may not
be realized, and even if substantially realized, may not have the
expected consequences to, or effects on, the Company. These
factors, other risks and uncertainties and financial details are
discussed in IMAX's most recent Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q. The Company undertakes no
obligation to update publicly or otherwise revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
For more information, please contact:
Investors:
IMAX Corporation, New
York
Brett Harriss
212-821-0187
bharriss@imax.com
|
Media:
IMAX Corporation, New
York
Mark Jafar
212-821-0102
mjafar@imax.com
|
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SOURCE IMAX Corporation