The Globe and Mail reports in its Tuesday, June 16, edition that Cineplex is planning to reopen its movie theatres and shore up its finances as it plots a course as a stand-alone business.
The Globe's Jeffrey Jones writes that Cineplex shares finished Monday in Toronto at $11.49, down $2.33 on the day Cineworld scrapped its $2.2-billion deal. Its cash offer was worth $34. Cineworld alleges Cineplex breached conditions in the merger agreement, without spelling out which ones. Cineplex, in turn, says Cineworld had no legal basis to renege, but suffered "buyer's remorse" after the pandemic forced the closing of cinemas, hammering revenues.
Cineplex plans to seek damages from Cineworld in a Canadian court.
Cineplex gave no indication that a deal could still go ahead, even at renegotiated terms. It said on Monday it plans to bolster its balance sheet while preparing for the gradual reopening of its movie screens across the country.
The plans include opening parts of its Rec Room entertainment complexes in Western Canada this week, then six theatres in Alberta on June 26. The company plans to begin opening cinemas in all markets where governments have allowed it to do so on July 3.
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