Imax Corp has removed itself from the marketplace after its share price tumbled more than 70% yesterday (October 12) in reaction to a profit warning. The giant screen purveyor said its current stock price is not a fair reflection of its long-term value.
Imax issued a third-quarter profit warning on Wednesday, saying it would not meet its revenue targets because of the downturn in the North American exhibition market.
Since August, four US circuits - Edwards Theatres, Regal Cinemas, Cinemark, and, more recently, General Cinema - have filed for bankruptcy protection. Edwards, Regal and Cinemark lease a total of 22 Imax systems with a further 12 on order. Imax derives most of its revenue from such leases as well as a share of ticket sales.
In July, the company announced plans to look for a strategic partner or buyer after its largest shareholder, New York investment house Wasserstein Perella, decided to unload its 30% stake.