SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 30, 2002
IMAX CORPORATION
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(Exact Name of Registrant as Specified in Its Charter)
CANADA
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(State or Other Jurisdiction of Incorporation)
0-24216 98-0140269
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(Commission File Number) (I.R.S. Employer Identification No.)
2525 Speakman Drive, Sheridan Park, Mississauga, Ontario L5K 1B1
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(Address of Principal Executive Offices) (Zip Code)
(905) 403-6500
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(Registrant's Telephone Number, Including Area Code)
n/a
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(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events.
Imax Corporation (the "Company") has reached an agreement with Regal
Entertainment Group, Inc., or REG, with respect to: (a) a settlement of all
litigation between the Company and REG's affiliate, Edwards Theatres,
Inc.("Edwards"); (b) a settlement of any and all of the Company's claims in
connection with Edwards' bankruptcy cases; (c) the installation of projection
systems for five (5) IMAX (R) theatres at certain locations owned and/or
operated by REG; and (d) terms relating to REG's operation of the IMAX theatres.
Pursuant to the agreement, and subject to the approval of the court supervising
the bankruptcy of Edwards, the Company will receive $13.5 million from REG in
connection with the transaction and settlement of the above-referenced actions.
Edwards filed for protection from its creditors pursuant to United States
bankruptcy laws in August 2000 and emerged from bankruptcy proceedings in
September 2001. (See the attached press release dated October 30, 2002, filed as
Exhibit 99.1 hereto and incorporated herein by this reference.)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
IMAX CORPORATION
(Registrant)
Date: October 30, 2002 By: /s/ Richard L. Gelfond
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Name: Richard L. Gelfond
Title: Co-Chairman and
Co-Chief Executive Officer
EXHIBIT INDEX
Exhibit Description
99.1 Press Release dated October 30, 2002
IMAX CORPORATION
2525 Speakman Drive
Mississauga, Ontario, Canada L5K 1B1
Tel: (905) 403-6500 Fax: (905) 403-6450
www.imax.com
IMAX SIGNS EXCLUSIVE AGREEMENT WITH REGAL ENTERTAINMENT GROUP
TO INSTALL IMAX THEATRE SYSTEMS IN FIVE LOCATIONS
Significant Boost to IMAX Commercial Theatre Strategy
All Claims Relating to Edwards Theatres Bankruptcy Resolved
Toronto, Canada, October 30, 2002 - IMAX Corporation (Nasdaq:IMAX; TSE:IMX)
announced today that it signed an agreement with Regal Entertainment Group
(Regal) (NYSE: RGC) to install IMAX(R) theatre systems in four Edwards Theatres
locations and one United Artists Theatre location. The agreement, which further
provides IMAX with certain exclusivity rights as Regal's large format theatre
system provider, also resolves all of IMAX's claims relating to the Edwards
bankruptcy proceedings. The agreement is subject to Edwards bankruptcy court
approval.
The installation of these five IMAX theatres increases the number of IMAX
theatres operated by Regal to 11-- more than any other third-party operator in
the world. Regal's decision to virtually double the size of its network comes on
the heels of the introduction of IMAX(R) DMR(TM), IMAX's proprietary new
technology that enables the conversion of Hollywood live-action films into a
genuine IMAX experience. The first two films to undergo the conversion are
Apollo 13 The IMAX Experience, which opened to universally rave reviews on
September 20th and Star Wars(R): Episode II Attack of the Clones - The IMAX
Experience, which opens exclusively in IMAX theatres on November 1st.
"Regal's decision to convert its screens to IMAX theatres is a major step
forward in our commercial strategy and significantly enhances our ability to
attract studios to show important commercial films in the IMAX 15/70 format at
IMAX theatres," said IMAX co-CEOs Richard L. Gelfond and Bradley J. Wechsler.
"The economics for commercial filmmakers improves as the IMAX commercial network
expands, leading to the availability of more films, which should accelerate the
commercial growth of the IMAX theatre network. The Regal announcement hastens
the growth of the Company, delivers tangible earnings to the Company in 2003
and, by all measures, is an important milestone in the pursuit of our goal of
becoming a new release window for Hollywood films."
"We are excited by the upcoming film slate for IMAX theatres and by the
potential of IMAX DMR to add even more Hollywood content," said Regal's Chief
Executive Officer Michael Campbell. "We look forward to working with IMAX in the
future."
The five Regal locations contained IMAX theatre systems prior to the
bankruptcies of Edwards and United Artists in 2000 and 2001, respectively. Regal
acquired Edwards and United Artists in 2002. The theatres are located at:
Irvine, Ontario, and Valencia, California; Houston, Texas, and King of Prussia,
Pennsylvania.
About IMAX(R)DMR(TM):
IMAX transforms 35mm live-action films through digital re-mastering using IMAX's
proprietary, patent pending revolutionary technology known as IMAX(R) DMR(TM)
(Digital Re-Mastering). IMAX DMR sharpens and enhances the quality of the 35mm
original images and soundtrack which, when transferred into 15/70 format, are
transformed into the unparalleled image and sound quality of The IMAX
Experience.
About IMAX Corporation:
Founded in 1967, IMAX Corporation is one of the world's leading entertainment
technology companies. IMAX's businesses include the world's best cinematic
presentations together with IMAX, IMAX 3D and the development of the highest
quality digital production and presentation. IMAX has developed revolutionary
technology called IMAX(R) DMR(TM) (Digital Re-mastering) that makes it possible
for virtually any 35mm film to be transformed into the unparalleled image and
sound quality of The IMAX Experience(R). The IMAX brand is recognized throughout
the world for extraordinary and immersive family experiences. As of June 2002,
there were more than 225 IMAX theatres operating in 30 countries. More than 700
million people have seen an IMAX presentation since the medium premiered in
1970.
IMAX(R), The IMAX Experience(R) and IMAX(R) DMR(TM) are trademarks of IMAX
Corporation. More information on the Company can be found at www.imax.com.
About Regal Entertainment Group:
Regal Entertainment Croup (NYSE: RGC) is the largest motion picture exhibitor in
the world. Our theatre circuit, comprising Regal Cinemas, United Artists
Theatres and Edwards Theatres, operates 5,711 screens in 530 locations in 36
states. Our geographically diverse circuit represents over 23% of domestic box
office receipts and includes theatres in 41 of the top 50 U.S. Designated Market
Areas as well as prime locations in growing suburban markets. We believe that
the size, reach and quality of our theatre circuit provides patrons with a
convenient and exceptional movie-going experience. Additional information is
available by visiting the Company's Web site at www.REGMovies.com.
This press release contains forward looking statements that are based on
management 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 effect these statements include the timing of theatre system
deliveries, the mix of theatre systems shipped, the timing of the recognition of
revenues and expenses on film production and distribution agreements, the
viability of new businesses and fluctuations in foreign currency and in the
large format and general commercial exhibition market. These factors and other
risks and uncertainties are discussed in the Company's Annual Report on Form
10-K for the year ended December 31, 2000 and in the subsequent reports fled by
the Company with the Securities and Exchange Commission.
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For additional information please contact:
Media: Analysts:
IMAX Corporation, New York IMAX Corporation, New York
Romi Schutzer Stephen G. Abraham
212-821-0144 212-821-0140
rschutzer@imax.com sabraham@imax.com
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Business Media: Financial Contacts:
Sloane & Company, New York Regal Entertainment Group, Tennessee
Whit Clay Don De Laria
212-446-1864 Vice President - Investor Relations
wclay@sloanepr.com 865-925-9685
- ------------------ ddelaria@regalcinemas.com
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Entertainment Media: Media Contact:
Newman & Company, Los Angeles Regal Entertainment Group, Tennessee
Al Newman Dick Westerling
818-784-2130 Senior Vice President - Marketing
asn@newman-co.com 865-925-9539
- ----------------- dick.westerling@regalcinemas.com
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