TORONTO, July 20, 2020 /CNW/ - Cineplex Inc.
("Cineplex" or the "Company") (TSX: CGX) is pleased to announce
that it has completed the issue and sale of an additional
$41,250,000 aggregate principal
amount of 5.75% convertible unsecured subordinated debentures (the
"Debentures"), at a price of $1,000
per Debenture, pursuant to the exercise in full of the
over-allotment option granted to the underwriters in connection
with the Company's recently completed underwritten offering of
$275 million aggregate principal
amount of Debentures (the "Offering"). Together with the Debentures
issued on July 15, 2020, Cineplex
will have issued a total of $316,250,000 aggregate principal amount of
Debentures.
The Offering was made through a syndicate of underwriters led by
Scotiabank and including BMO Capital Markets, RBC Capital Markets,
CIBC Capital Markets, National Bank Financial Inc. and TD
Securities Inc. The Debentures have been listed on the TSX under
the symbol CGX.DB.B. The Company will use the net proceeds from the
closing of the over-allotment option to repay indebtedness under
its revolving credit facility.
The Debentures have not and will not be registered under the
U.S. Securities Act of 1933, as amended (the "Act"), and may
not be offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements under the Act. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy the securities in any jurisdiction.
Caution Regarding Forward Looking Statements
Certain
information included in this news release contains forward-looking
statements within the meaning of applicable securities laws.
These forward-looking statements include, among others, statements
with respect to Cineplex's objectives, goals and strategies to
achieve those objectives and goals, as well as statements with
respect to Cineplex's beliefs, plans, objectives, expectations,
anticipations, estimates and intentions. The words "may",
"will", "could", "should", "would", "suspect", "outlook",
"believe", "plan", "anticipate", "estimate", "expect", "intend",
"forecast", "objective" and "continue" (or the negative thereof),
and words and expressions of similar import, are intended to
identify forward-looking statements.
By their very nature, forward-looking statements involve
inherent risks and uncertainties, including those described in
Cineplex's Annual Information Form ("AIF"), its management
discussion and analysis ("MD&A") for the year ended
December 31, 2019 and for the three
months ended March 31, 2020 and its
final short form prospectus dated July 9,
2020 filed in connection with the Offering. Those risks and
uncertainties, both general and specific, give rise to the
possibility that predictions, forecasts, projections and other
forward-looking statements will not be achieved. Certain material
factors or assumptions are applied in making forward-looking
statements and actual results may differ materially from those
expressed or implied in such statements. Cineplex cautions readers
not to place undue reliance on these statements, as a number of
important factors, many of which are beyond Cineplex's control,
could cause actual results to differ materially from the beliefs,
plans, objectives, expectations, anticipations, estimates and
intentions expressed in such forward-looking statements. These
factors include, but are not limited to, the duration and impact of
the COVID-19 pandemic on Cineplex, the movie exhibition industry
and the economy in general, as well as Cineplex's response to the
COVID-19 pandemic as it relates to the closure of its theatres and
location-based entertainment venues, employee reductions and other
cost- cutting initiatives, and increased expenses relating to
safety measures taken at its facilities to protect the health and
well-being of customers and employees; Cineplex's expectations with
respect to liquidity and capital expenditures, including its
ability to meet its ongoing capital, operating and other
obligations, and anticipated needs for, and sources of, funds;
Cineplex's ability to execute cost-cutting and revenue enhancement
initiatives in response to the COVID-19 pandemic; risks generally
encountered in the relevant industry, competition, customer, legal,
taxation and accounting matters; the outcome of any litigation
surrounding the termination of the Cineworld transaction; and
diversion of management time on litigation related to the Cineworld
transaction.
The foregoing list of factors that may affect future results is
not exhaustive. When reviewing Cineplex's forward-looking
statements, readers should carefully consider the foregoing factors
and other uncertainties and potential events. Additional
information about factors that may cause actual results to differ
materially from expectations and about material factors or
assumptions applied in making forward-looking statements may be
found in the "Risks and Uncertainties" section of Cineplex's AIF
and MD&A and the "Risk Factors" section of its final short form
prospectus dated July 9, 2020.
Cineplex does not undertake to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable
Canadian securities law. Additionally, we undertake no obligation
to comment on analyses, expectations or statements made by third
parties in respect of Cineplex, its financial or operating results
or its securities. All forward-looking statements in this news
release are made as of the date hereof and are qualified by these
cautionary statements. Additional information, including Cineplex's
AIF and MD&A, can be found on SEDAR at www.sedar.com.
About Cineplex
Cineplex (TSX: CGX) is a top-tier
Canadian brand that operates in the film entertainment and content,
amusement and leisure, and media sectors. As a leading
entertainment and media company, Cineplex welcomes millions of
guests annually through its circuit of theatres and location-based
entertainment ("LBE") venues across the country. In addition to
being Canada's largest and most
innovative film exhibitor, Cineplex also operates successful
businesses in digital commerce (CineplexStore.com), food service,
alternative programming (Cineplex Events), cinema media (Cineplex
Media), digital place-based media (Cineplex Digital Media "CDM")
and amusement solutions (Player One Amusement Group "P1AG").
Additionally, Cineplex operates an LBE business through
Canada's newest destinations for
'Eats & Entertainment' (The Rec Room), and entertainment
complexes specifically designed for teens and families (Playdium).
Cineplex is a joint venture partner in SCENE, Canada's largest entertainment loyalty
program.
Proudly recognized as having one of the country's Most Admired
Corporate Cultures, Cineplex employs approximately 13,000 people in
its offices across Canada and
the United States. To learn more
visit Cineplex.com or download the Cineplex App.
SOURCE Cineplex