TORONTO, Aug. 22,
2024 /CNW/ - (TSX: CGX) – Cineplex Inc.
("Cineplex" or the "Company"), Canada's leading entertainment
and media company, announced today that the Toronto Stock
Exchange has accepted its notice of intention to make a normal
course issuer bid ("NCIB") for its common shares ("Shares").
Pursuant to the notice, Cineplex proposes to purchase, as
opportunities arise from time to time over the next 12 months, up
to 6,318,345 Shares, being equal to 10% of its public float of
63,183,455 Shares issued and outstanding as of August 20, 2024. As of August 20, 2024, there were a total of 63,684,281
Shares outstanding. Purchases under the NCIB will be made through
the facilities of the Toronto Stock Exchange or through alternative
Canadian trading systems and in accordance with applicable
regulatory requirements at a price per Share equal to the market
price at the time of acquisition. The number of Shares that can be
purchased pursuant to the NCIB is subject to a current daily
maximum of 99,642 Shares (which is equal to 25% of 398,570 Shares,
being the average daily trading volume during the six months ended
July 31, 2024), in each case subject
to Cineplex's ability to make one block purchase of Shares per
calendar week that exceeds such limits. All purchases of Shares
under the NCIB will be made by the Company in accordance with the
requirements of the Toronto Stock Exchange and an alternative
Canadian trading system.
Cineplex may begin to purchase Shares on or about August 26, 2024 and the bid will terminate on
August 25, 2025 or such earlier time
as the Company completes its purchases pursuant to the bid or
provides notice of termination. Any Shares purchased under the NCIB
will be cancelled upon their purchase. Cineplex intends to fund the
purchases out of its available cash.
In connection with the NCIB, Cineplex has established an
automatic share purchase plan (the "Plan") with its designated
broker that contains specified parameters regarding how its Shares
may be purchased under the NCIB during times when the Company would
ordinarily not be permitted to purchase Shares due to regulatory
restrictions or self-imposed blackout periods. Cineplex may elect
to suspend or discontinue its NCIB in accordance with certain
conditions set forth in the Plan. The Plan will be effective as of
August 26, 2024.
Cineplex is commencing the NCIB because the board of directors
believes that the market price of the Shares does not reflect the
intrinsic value of the Company and the repurchase of Shares would
be in the best interests of the Company and its shareholders, and
would represent an attractive and appropriate use of available
funds. Decisions regarding the amount and timing of future
purchases of Shares will be based on market conditions, share price
and other factors.
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. Cineplex offers a unique escape from the everyday to
millions of guests through its circuit of 169 movie theatres and
location-based entertainment venues. In addition to being
Canada's largest and most
innovative film exhibitor, the company operates Canada's favourite destination for 'Eats &
Entertainment' (The Rec Room), complexes specially designed for
teens and families (Playdium), and an entertainment concept that
brings movies, amusement gaming, dining, and live performances
together under one roof (Cineplex Junxion). It also operates
successful businesses in digital commerce (CineplexStore.com),
alternative programming (Cineplex Events), motion picture
distribution (Cineplex Pictures), cinema media (Cineplex Media) and
digital place-based media (Cineplex Digital Media). Providing even
more value for its guests, Cineplex is a partner in Scene+,
Canada's largest entertainment and
lifestyle loyalty program.
Proudly recognized as having one of the country's Most Admired Corporate Cultures, Cineplex employs
over 10,000 people in its offices and venues across Canada. To learn more, visit
Cineplex.com.
Caution Regarding Forward-Looking Statements:
Certain statements and/or information in this news release
(identified by words such as "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, and similar expressions suggesting future events or
future performance are intended to identify forward-looking
statements. More particularly and without limitation, this press
release contains forward-looking statements and information
concerning future purchases of Shares under the NCIB. Such
forward-looking statements are based on expectations and
assumptions made by Cineplex, and there is no assurance that any
Shares will be purchased under the NCIB. By its nature, such
forward-looking statements are subject to various risks and
uncertainties, which could cause the actual results and
expectations to differ materially from the anticipated results or
expectations expressed. Readers are cautioned that undue reliance
should not be placed on forward-looking statements as actual
operations and results may vary materially from the beliefs, plans,
objectives, expectations, anticipations, estimates and intentions
expressed in such forward-looking statements. Cineplex does not
undertake to update, correct or revise any forward-looking
statements as a result of any new information, future events or
otherwise, except as may be required by applicable law.
SOURCE Cineplex