Bloomberg News

Imax Rises on Share Sale to Douglas Family, Loan

May 06, 2008

Imax Corp. (IMAX:US), the chain of giant-screen movie theaters, gained the most in six weeks in Nasdaq Stock Market trading after announcing a share sale and extending a credit agreement.

Imax rose 43 cents, or 6.4 percent, to $7.11. The Mississauga, Ontario-based company said the Douglas family, its largest shareholder, bought 2.73 million additional shares for $6.60 apiece.

In addition, a unit of U.S. lender Wachovia Corp. amended and extended terms of a loan. Including proceeds from the share sale, Imax has access to about $55 million to $60 million in funding for the rollout of its digital projection technology this summer, according to a statement today distributed by PR Newswire.

The Douglas family, which will own 19.9 percent of Imax after the transaction closes on May 8, is barred for five years from increasing its holding further.

To contact the reporter on this story: John Kipphoff in Toronto at jkipphoff@bloomberg.net.

To contact the editor responsible for this story: Nick Baker at at nbaker7@bloomberg.net.


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Companies Mentioned

  • IMAX
    (Imax Corp)
    • $25.8 USD
    • 1.11
    • 4.3%
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