HONG KONG and NEW YORK, March 22, 2016 /PRNewswire/ -- IMAX Corporation (NYSE: IMAX) and IMAX China Holding, Inc. (HKSE: 1970) announced today that IMAX China has been informed by Morgan Stanley Asia Limited, the lead underwriter for IMAX China's initial public offering, that its two lead private equity investors, CMC Capital Partners (CMC), China's leading investment fund with a focus on media and entertainment sector, and FountainVest Partners (FountainVest), a leading China-focused private equity firm, have extended their lock-up for three additional months from April 8 in connection with the shares the two funds own in IMAX China.
In exchange for entering into the new lock-up, the underwriters agreed to allow CMC and FountainVest to sell 20 million shares in advance of the previously negotiated expiration date of their initial lock-up of April 8, 2016. This agreement enables CMC and FountainVest to partially monetize their initial pre-IPO investment in IMAX China, and the parties believe it will ensure a more efficient and orderly trading of shares in IMAX China on the Hong Kong Stock Exchange once the lock-up expires with respect to certain other investors on April 8. CMC and FountainVest remain strategic investors in IMAX China and CMC will continue to partner with IMAX China in the previously-announced IMAX China Film Fund.
"We were pleased to hear about this agreement because we believe that it will ensure an orderly transition of shares into the market and minimize potential volatility in the market for IMAX China shares around the expiration of the lock-up on April 8," said Richard L. Gelfond, Chairman of IMAX China and CEO of IMAX Corporation, IMAX China's corporate parent. "More importantly, we are pleased that CMC and FountainVest will continue as strategic investors in our company. These two funds were the very first investors in IMAX China, and their ongoing position as investors reflects their high degree of confidence in the future prospects and growth potential of IMAX China."
Ruigang Li, Chairman of CMC said, "Our investment in IMAX China has been very successful. We remain committed partners and are very supportive of the company and its leadership as IMAX China furthers its position as one of China's leading innovators of entertainment technology. I look forward to continuing to serve on the Board of IMAX China, working together to expand and grow China's movie and entertainment sector and increasing the presence of premium Chinese content around the globe through the joint venture CMC and IMAX China have created in connection with the IMAX China Film Fund."
Trading of IMAX China shares commenced on the Main Board of The Stock Exchange of Hong Kong Limited on October 8, 2015, and the company's stock price has appreciated more than 63 percent as of March 22, 2016, and since completing its initial public offering.
About IMAX China
IMAX China is a subsidiary of IMAX Corporation, and is incorporated under the laws of Cayman Islands. IMAX China was established by IMAX Corporation specifically to oversee the expansion of IMAX's business throughout Greater China. IMAX China trades on the Hong Kong Stock Exchange under the stock code "HK.1970."
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 theatres to connect with audiences in extraordinary ways, and, as such, IMAX's network is among the most important and successful theatrical distribution platforms for major event films around the globe.
IMAX is headquartered in New York, Toronto and Los Angeles, with offices in London, Tokyo, Shanghai and Beijing. As of Dec. 31, 2015, there were 1,061 IMAX theatres (943 commercial multiplexes, 19 commercial destinations and 99 institutions) in 67 countries. On Oct. 8, 2015, shares of IMAX China, a subsidiary of IMAX Corp., began trading on the Hong Kong Stock Exchange under the stock code "HK.1970."
IMAX®, IMAX® 3D, IMAX DMR®, Experience It In IMAX®, An IMAX 3D Experience®, The IMAX Experience®, IMAX Is Believing® and IMAX nXos® are trademarks of IMAX Corporation. More information about the Company can be found at www.imax.com. You may also connect with IMAX on Facebook (www.facebook.com/imax), Twitter (www.twitter.com/imax) and YouTube (www.youtube.com/imaxmovies).
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. Important factors that could affect these statements include, but are not limited to, references to future capital expenditures (including the amount and nature thereof), business and technology strategies and measures to implement strategies, competitive strengths, goals, expansion and growth of business, operations and technology, plans and references to the future success of IMAX Corporation together with its wholly-owned subsidiaries (the "Company") 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 , the signing of theatre system agreements; conditions, changes and developments in the commercial exhibition industry; the performance of IMAX DMR films; the potential impact of increased competition in the markets within which the Company operates; competitive actions by other companies; the failure to respond to change and advancements in digital technology; 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; risks related to the Company's growth and operations in China; the Company's largest customer accounting for a significant portion of the Company's revenue and backlog; risks related to 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; risks related to the Company's inability to protect the Company's intellectual property; risks related to the Company's implementation of a new enterprise resource planning system; general economic, market or business conditions; the failure to convert theatre system backlog into revenue; changes in laws or regulations; and other factors, many of which are beyond the control of the Company. These factors, other risks and uncertainties and financial details are discussed in IMAX's most recent Annual Report on Form 10-K.
This press release does not constitute or form a part of any offer to sell or solicitation to purchase or subscribe for securities in the United States. The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended from time to time (the "U.S. Securities Act"). The securities may not be offered or sold in the United States except pursuant to registration or an exemption from the registration requirements of the U.S. Securities Act. There will be no public offer of securities in the United States.
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