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
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2024/22/c5839.html