Imax responds to Letko’s statement on proposed privatization of IMAX China

“With reference to the announcement made by Letko, Brosseau & Associates Inc. on September 22, 2023 stating its intention to vote against the take private transaction, IMAX Corporation reiterates its belief that the transaction is in the best interests of IMAX China shareholders and represents a compelling offer. While IMAX China’s first half results are encouraging reflecting both theatre re-openings and increased box office market share, IMAX China’s share price continued to exhibit weakness and its trading volume hit all-time lows throughout 2023 prior to the proposed privatization transaction despite market awareness of IMAX China’s results through weekly box office reporting and the first quarter results released by IMAX Corporation on April 27, 2023. IMAX China’s volume weighted average price for the 30 and 90 full trading days prior to the transaction announcement was $6.46 and $7.50. We believe that major contributory factors to the historical share price weakness are a lack of trading liquidity, low institutional ownership and declining research coverage – all of which will remain unchanged should the transaction fail to receive shareholder approval. The proposal provides IMAX China shareholders with HK$10.00 per share in cash, which could be reinvested in IMAX Corporation’s shares for those shareholders interested in participating in the company’s continued growth in China.”