Despite 70% of Shareholders Voting "FOR",
Proposed Transaction Does Not Meet the Necessary Threshold for
Approval
NEW
YORK, Oct. 10, 2023 /PRNewswire/ -- IMAX
Corporation (NYSE: IMAX) today confirmed that the Company's
proposal to acquire IMAX China's outstanding 96.3 million shares
will not proceed following a vote by IMAX China shareholders.
At the Extraordinary General Meeting (EGM) of IMAX China
shareholders held October 9
EST/October 10 HKT, 70% of the shares
voted were in favor of the proposed transaction; however, votes
against exceeded the 10% threshold required by Hong Kong law to defeat a privatization
transaction. In total, approximately 61% of the total disinterested
shares of IMAX China common stock were voted.
"Even though our proposal received the vast majority of votes
cast, and support from both leading independent proxy advisory
firms, the vote did not achieve the threshold needed for approval,"
said Rich Gelfond, CEO of IMAX.
"While disappointing, the vote demonstrates that shareholders
believe, as we do, that the future of IMAX China is bright. We are
committed to our business in China
and our team will continue to create new growth opportunities for
the IMAX(R) brand and technology in this vital market
for blockbuster entertainment. Furthermore, we will explore
opportunities to deploy the incremental capital intended for this
transaction through alternate means of creating shareholder value,
such as share repurchases of IMAX Corporation stock."
IMAX China (HKSE: 1970.HK) is a Hong
Kong-listed subsidiary established by IMAX Corporation to
oversee its business in Greater
China.
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).
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, statements regarding
the benefits of the acquisition, expansion and growth of business,
operations and technology, industry prospects and consumer
behavior, plans and references to the future success of IMAX
Corporation together with its consolidated subsidiaries 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,
risks related to the adverse impact of the COVID-19 pandemic; 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 as well
as geopolitical conflicts, such as the conflict between
Russia and Ukraine; risks related to the Company's growth
and operations in China; the
performance of IMAX DMR® films and other films released to the IMAX
network; the signing of IMAX System agreements; conditions, changes
and developments in the commercial exhibition industry; 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 digital technology; risks
relating to consolidation among commercial exhibitors and studios;
risks related to brand extensions and new business initiatives;
conditions in the in-home and out-of-home entertainment industries;
the opportunities (or lack thereof) 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 its
intellectual property; risks related to climate change; risks
related to weather conditions and natural disasters that may
disrupt or harm the Company's business; risks related to the
Company's indebtedness and compliance with its debt agreements;
general economic, market or business conditions; risks related to
political, economic and social instability, including with respect
to the Russia-Ukraine conflict; the failure to convert IMAX
System backlog into revenue; changes in laws or regulations; any
statements of belief and any statements of assumptions related to
the foregoing; other factors and risks outlined in the Company's
periodic filings with the United States Securities and Exchange
Commission or in Canada, the
System for Electronic Document Analysis and Retrieval; 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.
No statement in this press release should be interpreted to mean
that the earnings or financial performance of IMAX Corporation or
IMAX China for the current year or future years will necessarily
match or exceed the historical or published earnings or financial
performance of IMAX Corporation or IMAX China, respectively.
For more information, please contact:
Investors:
Jennifer
Horsley
jhorsley@imax.com
Media:
Mark Jafar
mjafar@imax.com
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SOURCE IMAX Corporation