Business
Cineplex Announces Temporary Closure of Theatres and Provides Update on Transaction with Cineworld
Cineplex Announces Temporary Closure of Theatres and Provides Update on Transaction with C...
About this update from Cineplex Inc.
[{"type":"text","content":"\n\n\n\nCineplex Announces Temporary Closure of Theatres and Provides Update on Transaction with Cineworld\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, March 16, 2020\n\n\n\nTORONTO, March 16, 2020 /CNW/ - (TSX: CGX) – In response to growing global concerns around the spread of COVID-19 and various Canadian government directives, Cineplex Inc. (\"Cineplex\") today announced that in an abundance of caution it will be temporarily closing its network of theatres and location-based entertainment venues across Canada starting March 16, 2020, through to April 2, 2020. The re-opening of locations will be reassessed at that time.\n\n \n \n \n \n \n \n\n \nCineplex today also provided an update on the status of its previously-announced transaction with Cineworld Group plc (LSE: CINE) (\"Cineworld\") pursuant to which an indirect wholly-owned subsidiary of Cineworld has agreed to acquire all of the issued and outstanding common shares (the \"shares\") of Cineplex for $34 per share in cash (the \"Transaction\").\nUnder the definitive arrangement agreement entered into among Cineplex and Cineworld on December 16, 2019 (the \"Arrangement Agreement\"), closing of the Transaction remains subject to the satisfaction or waiver of certain conditions to closing that have not yet been satisfied, including the receipt of Investment Canada Act approvals, the representations and warranties of the parties remaining true and correct (subject to certain materiality qualifiers), the parties having fulfilled or complied in all material respects with each of their covenants contained in the Arrangement Agreement, and as at the date of closing of the Transaction, Cineplex shall have no more than $725 million outstanding under its credit agreement, subject to certain exclusions (the \"Debt Condition\"). The impact of the COVID-19 outbreak in Canada and the rapidly evolving reaction of governments and the public to the outbreak have made business planning uncertain for the exhibition and location-based entertainment industries. In...