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The issue with Cineplex is that they need the money too. They are actually more leveraged than us when it comes to debt and assets. This is why there was panic amongst investors when Cineworld said they are considering bankruptcy. Cineplex has tons of debt as well, so without the $1.2bn things get sticky. Just think about the fact that Cineplex stock only rose about 10% that day on the judgement.

It could be the case that Cineplex is seeking a way to secure at least some payout in the event of bankruptcy, but unless if they get a settlement with CINE it will not happen. CINE actually holds some of the cards.

See this part of the preliminary results from March “Cineworld believes it has compelling arguments that the trial judge erred when assessing liability and damages and believes that it has a meritorious appeal. In the event that Cineworld is unsuccessful on appeal the group would not have sufficient liquidity to pay the existing level of damages awarded. It is also noted that Cineplex is an unsecured creditor.”

So as things stand, if CINE goes bust then Cineplex can pretty much wave bye-bye to the vast majority (if not all) of the money. CINE included that little extra of the unsecured creditor because they know it’s a powerful card they hold.

All in my opinion.

@bullsbears this is my exact point too, if you are serious about diluting equity to fund the business, then why release such a statement? It is common knowledge that if you release bad news you will drop the price.

The first thing that comes to my mind is that perhaps lenders told CINE that it is now time to dilute the equity to pay, and that their continued support is conditional upon that, then Mooky essentially released the statement making it virtually impossible to do anything with the equity. If you were serious about diluting, then you would say it on the spot, when a rights issue is undertaken companies say it straight away, I remember with EZJ just one morning they released the RNS saying that the rights issue is happening and gave the details.

All in my opinion.

@powerfader, to answer your question, there are never more buys than sells, they are always the same in number. The share price movement comes from the demand and supply aspect. On Wednesday, we had a negative RNS and a ton of people wanted to sell and very few people wanted to buy, so the price dropped due to the higher demand to sell than buy, but there can not be more buys than sells, the stock market works in a transactional manner.

Vice-versa, when we saw Bond was doing great last year, we had more people who wanted to buy than sell, causing the price to increase.

I have no clue what the information LSE is showing is about, but it doesn’t make sense that the amount sold and the amount bought is different.

In my view.

Aimmaster we get it, the short seller believes that shareholders are getting wiped out. We don’t need a link to every news story published about it lol

This thread has a lot of green boxes, but the ‘1p soon’ title gives me a good indication as to why.

A lot of you people are really speaking to the wrong demographic. You are speaking to people who are down over 90%+, so whether the share price is 4p or 3p or 2p or 1p or 0.5p, the difference really is negligible, so all of this ‘1p soon’ ‘D4E coming’ etc etc is causing no effect whatsoever, you are better off expending your energy elsewhere. All in my view.

@Yuri.F, not necessarily. Remember that after the large drop the next day was up by about 18%+ if I remember correctly, so if anything it is likely the case that the RNS filings we are seeing come through now are from the large drop, maybe today or the day after we will see what the reason behind the large rise is from filings. Maybe we won’t, let’s see what happens.

@jimmij, this is a good point. It does specifically state that ‘Cineworld expects to continue to meet its ongoing business counterparty obligations.’

Notice ‘continue’, this means they were doing it before. How much before is anyone’s guess, but we received no specific update from CINE. It could be that CINE is saving the news for the interim results.

Well, they’re a short seller, so I wouldn’t expect any bullish statements from them…

@Ianharding, is it now a settled fact that Goldman increased? It is not very clear from the RNS?

Hey @BlueBuxton, yup I remember. I really hope that CINE can get themselves back together.

Hopefully we have another AGM, I think things will look very different by then, either Mooky will be seen as sin mastermind or he will be getting a lot of angry investors. Even in the event of Chapter 11 in the US, we would still continue trading as a stock I believe.

The Reddit board has been very active recently, I remember seeing a post on wall street bets not too long ago.

@Yuri I was talking from about 1-2 weeks ago before all of the RNS concerns emerged. We are down about 87% from 2 weeks ago, so that is what I was referring to with the 90% figure.

From 2019, yes it would be 99%. At that extent, no need to worry about shareholder wipeout because you have basically been wiped out already in the grand scheme of things in my opinion.

Hello @BlueBuxton, it has been really hectic here for the past few days. I thought it would calm down after a day or two from the very first RNS of this mess, but quite a few have stuck around.

I’m doing ok, CINE doesn’t appear to be though :)

I won’t lie, I didn’t see this coming, but now we can only wait and see what happens. Something still doesn’t match up, how is the company talking about such a potential bankruptcy when Top Gun has just passed, there is no way CINE didn’t make money BIG TIME on that.

I’m holding on in the hopes that Mooky is putting on a façade. All that was said was that options are being considered and the stock drops 90% lol, only in CINE. That is my view of it anyway.

How you are managing well yourself :)

Here is my understanding of the RNS.

In actual terms, GS have increased the amount of voting rights they have. They have decreased the amount of direct voting rights and increased the amount of indirect voting rights, to give them about 3.4% now (2.9% before).

How they have gone about this and the exact effect, I’m not sure. It could be an options contract as I see a ‘swap’ in that RNS which gives me the impression that it’s an options contract.

However, they have sold shares, as the amount of direct voting rights they have has decreased.

All in my opinion and my understanding of it.

@Guvan, I agree with this idea. Perhaps maybe not such a large reduction, but any significant reduction could get people in. The increase in snacks sales could seriously help.

The issue that exists at this time is that the film offering is insufficient. If we had bigger films and charged a lower price like that, CINE will be filled to the brim imo.

Where have you found out that all the directors have sold their shares Metom? I have seen no such info.

There is also a rumour circulating that Jangho have increased their stake on some CINE forums, but similarly, I have seen no such information.

Many of us LTHs are down 90%+, I am down about 95%. Sure I could sell out now, but for a short-term issue that could be dealt with in a few months time? I don’t think so. If we LTHs win, then we win. If we lose, we lose. It is that simple. I will be amongst those that hold to the very end if it comes to that, because no point taking out the leftover peanuts that my investment is at the moment.

@RickEngland, CINE never even said that they are not going to be able to pay staff, quite the contrary. They said they anticipate that the company will be able to continue trading as normal. Remember that CINE’s largest landlord in the US has said they are up to date on all payments. If they are up to date there, then how could paying employees be a problem?

If the situation was that dire that they couldn’t pay employees they would have shut it down from operating. They did this back in 2020, the film slate was so poor that they decided to not reopen Regal in the US because it was not financially sensible. That turned out to be a good decision. The fact that CINE hasn’t done this yet to preserve cash shows there is still an incentive to keep it open for business, and that paying staff and landlords is still worth it imo.

@RickEngland, they didn’t confirm that it was the case either. I just noticed @Bonkers told you the same thing.

It is all down to your own interpretation, if you want to take the bearish side that’s up to you. But the words ‘we are struggling with cash’ are not present in either RNS.

Good morning @Bonkers, I’m doing ok thank you. Hope you are keeping well yourself.

I too hope that such a day will come, I’m sure that the majority of these new individuals here are day traders looking to change sentiment for the benefit of their own pocket. We just have to wait and see, I continue to pray :)

Good morning @StanleyPro, and thank you. It really is just that, the company is exploring options. It is now very clear to Cineplex that whether they get anything out of this lawsuit or not is contingent upon their co-operation imo.

@nuri, I acknowledge that the company could be finished, everyone knows how stretched the balance sheet is.

All I’m saying is that it hasn’t been the first time that all these rumours of bankruptcy emerged, nothing is over until we get the RNS stating such.