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Rus as great as they are I'd rather carry on listening to these guys. Very interesting read from them, thanks
Good comment, Latpulldown.
It is never pleasant to indulge in schadenfreude but Cineplex have brought this to themselves.
It is also worth mentioning that Ontario has BANNED the consumption of food and drink whilst watching a movie - it's no secret that cinema groups make their money from concessions so this has been a further blow along with the closures that were mandated.
Source: https://curiocity.com/ontarians-can-no-longer-eat-at-the-movies-even-cineplex-agrees-it-wont-be-the-same/
I'd sit back and chill on the legal side as it is probably about a year away and then as HNS and others have pointed out there would then be a UK side over and above. Cannacord incidentally rated the Cineplex chances of success at 25%.
Shortly after we pulled the plug on the deal and Ciniplex weren't able to pass on an extra $200M+ debt to ourselves they had to almost immediately go to the finance markets to raise monies. That they did by way of a debenture and they raised $316,250,000 (Canadian) at a 5.75% coupon.
http://irfiles.cineplex.com/Attachments/NewItems/Cineplex%20Debenture%20Over%20Allotment%20Release%20FINAL_20200720124014_0.pdf
At the end of Q3 2021 their balance sheet only showed just over $28 Million ($28,471,000)
Monthly cash burn during that quarter they reported had reduced from $24M to $2.9M.
BUT
It doesn't take a genius to work out that what with Omicron cinema lockdowns in Canada they will be back to cash burning nearer the $24M per month. Rents, film studios and suppliers will all be presently without payment. These will have to be paid.
So I think they were very close to having burn't through all of the debenture monies of $316,250,000 (Canadian) prior to cinemas closing in Canada.
Critically as well though, unlike ourselves @CINE who have made a tidy sum of money from Spiderman No Way Home to help to tide us over towards The Batman, they (Cineplex) have had the biggest revenue generator of the year cut extremely short and will probably miss the full theatrical window on this. There is a every chance it will be on streaming by the time they emerge from the present Canadian lockdown. Not only that they will have had Goodmans legal fees land at their door and now need to retain them.
My point is that I think they need to raise again and imminently and it might have to be by another route. dyor.
https://www.newswire.ca/news-releases/cineplex-inc-reports-third-quarter-results-815305791.html
(3rd Table from the end for cash left - "Cash and cash equivalents - End of period")