IMAX announces extension of current share buyback program
NEW YORK, June 25, 2021 / PRNewswire / – IMAX Corporation (NYSE: IMAX) today announced a 12-month extension of the company’s share repurchase program via June 30, 2022. The current share buyback program has authorized the Company to buy back up to $ 200 million of its ordinary shares, of which approximately $ 89.4 million remains available and was due to expire on June 30, 2021.
The Company repurchased a total of approximately 6 million of its common shares for an aggregate purchase price of approximately $ 110.6 million as part of the share buyback program in progress since its launch on July 1, 2017. With this effective extension July 1, 2021, the Company remains authorized to repurchase until approximately $ 89.4 million value of ordinary shares by June 30, 2022. Given the current operating environment, the Company does not currently intend to repurchase any shares.
The repurchases carried out to date by the Company as part of the current share buyback program have resulted in a net reduction of approximately 9% of the shares in circulation since the start of the program on July 1, 2017.
Repurchases under the Company’s share buyback program may be made either on 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 the authorization does not include the shares bought back as part of the management of employee share compensation plans.
Exemption from Canadian securities laws
The Company has received an exemption decision issued by the Ontario Securities Commission dated May 21, 2020 to be exempt from the formal requirements of takeover bids under Canadian securities laws. The exemption decision allows the Company to repurchase up to 15% of its outstanding common shares within a 12-month period through the New York Stock Exchange (“NYSE”) as part of buyback programs that the Company may implement from time to time. Canadian securities laws govern the ability of an issuer to redeem its own securities.
The decision allows the Company to make repurchases under its repurchase programs from time to time in excess of the maximum allowed based on the existing exemption of “other published markets” from the formal requirements of public offerings. redemptions available under Canadian securities laws. The “other published markets” exemption limits the Company’s ability to repurchase its securities through the NYSE to 5% of the issuer’s outstanding securities during any 12-month period.
The conditions of the exemption decision are as follows: (i) any buyback carried out on the basis of the exemption decision must be authorized within the framework of and form part of buyback programs established and carried out in accordance with the United States securities laws and NYSE rules, (ii) the total number of common shares acquired under the exemption decision by the Company and any person acting jointly or in concert with the Company during the a 12-month period does not exceed 15% of the outstanding shares common shares at the start of the 12-month period, (iii) the common shares are not listed and posted for trading on a stock exchange in Canada, (iv) the exemption decision only applies to the acquisition of ordinary shares until March 25, 2022and (v) prior to purchasing ordinary shares based on the exemption decision, the Company discloses the terms of the exemption decision and the conditions applicable to it in a press release that is issued and filed on the Electronic Document Analysis and Retrieval System and includes this information as part of the press release to be issued under the “other published market exemption” with respect to any buyback program that may be implemented by the Company, to which this press release satisfies.
About the IMAX company
IMAX, an innovator in entertainment technology, combines proprietary software, architecture and equipment to create experiences that take you beyond the edge of your seat into a world you never imagined. Top filmmakers and studios use IMAX theaters to connect with audiences in extraordinary ways and as such the IMAX network is one of the largest and most successful theatrical distribution platforms for major event films. worldwide.
IMAX is headquartered at new York, Toronto, and Los Angeles, with additional offices in London, Dublin, Tokyo, and Shanghai. From 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. The shares of IMAX China Holding, Inc., a subsidiary of IMAX Corporation, are listed 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 which are registered or otherwise protected under the laws of various jurisdictions. More information about the Company can be found at www.imax.com. You can 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).
This press release contains forward-looking statements based on the assumptions of IMAX management 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 statements. prospective. These forward-looking statements include, without limitation, references to plans regarding share repurchases pursuant to the share repurchase program or regarding the expected filing and receipt of an extension of the current exemption decision at -beyond March 25, 2022, business and technology strategies and measures to implement strategies, competitive strengths, goals, business expansion and growth, operations and technology, future capital expenditures (including amount and nature thereof), industry outlook and consumer behavior, plans and references for the future, the success of IMAX Corporation and its consolidated subsidiaries (the “Company”) and expectations regarding the future operational, financial and technological results of the Company. These forward-looking statements are based on certain assumptions and analyzes 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 deems appropriate in the future. circumstances. However, whether actual results and developments will be in line with expectations and forecasts the Company is subject to a number of risks and uncertainties, including, but not limited to, the impact of COVID-19 on the business of the Company, the financial conditions and results of operations and on the affairs of our customers and exhibiting partners; risks associated with investments and operations in foreign jurisdictions and with any future international expansion, including those relating to the economic, political and regulatory policies of local governments and the laws and policies of United States and Canada; risks related to the growth and activities of the Company in China; the performance of IMAX DMR® films; the signing of IMAX Theater System agreements; conditions, changes and developments in the trade show industry and the entertainment industry in general, including the home and out-of-home entertainment markets; risks associated with currency fluctuations; the potential impact of increased competition in the markets in which the Company operates, including the competitive actions of other companies; the inability to respond to change and advancements in entertainment technology; risks associated with consolidation between commercial exhibitors and film studios; risks related to new business initiatives that may be presented and pursued by the Company; cybersecurity and data privacy risks; risks associated with the Company’s inability to protect the Company’s intellectual property; risks related to the Company’s indebtedness and compliance with its loan agreements; general economic, market or business conditions; failure to convert IMAX Theater System backlog into revenue; changes in laws or regulations; failure to fully realize the projected cost savings and benefits of any of the Company’s restructuring initiatives; assumptions related to the above; other risks described in our periodic filings with the SEC; and other factors, many of which are beyond the control of the Company. Therefore, all forward-looking statements contained in this press release are qualified by these cautionary statements, and actual results or developments anticipated by the Company may not be realized, and even if substantially realized, may not. have the consequences or the expected 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 assumes no obligation to publicly update or otherwise revise forward-looking statements, whether as a result of new information, future events or otherwise.
For more information please contact:
SOURCE IMAX Corporation