NEW YORK, Nov. 16, 2009 (GLOBE NEWSWIRE) -- IMAX Corporation (Nasdaq:IMAX) (TSX:IMX) today announced that its Chief Executive Officer, Richard L. Gelfond, and its Chairman, Bradley J. Wechsler, have adopted stock trading plans in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934. Rule 10b5-1 permits officers and directors of public companies to adopt pre-determined plans for buying and selling specified amounts of stock if the plan is adopted at a time when the purchaser or seller is not aware of any material non-public information.
Under Mr. Gelfond's 10b5-1 trading plan, he will be able to sell up to 720,000 shares in equal monthly installments over a 12-month period. The plan includes escalating minimum prices relating to the sale of shares over the course of the plan. Under Mr. Wechsler's plan, he will be able to sell up to 900,000 shares, in equal monthly installments over a 10-month period. If all 1.62 million shares were to be sold throughout the duration of the plans, Mssrs. Gelfond and Wechsler would continue to own approximately 65% of their combined share ownership in the Company. In addition, Mssrs. Gelfond and Wechsler have put in place a plan to exercise approximately half of their stock appreciation rights at predetermined times and amounts over the duration of their 10b5-1 plans, which is designed to reduce the impact of these awards on the Company's financial results.
Transactions under both plans will be disclosed publicly through Form 144 and Form 4 filings with the Securities and Exchange Commission.
In a joint statement, Mssrs. Gelfond and Wechsler said, "We believe strongly in IMAX and its prospects for continued growth and success. Neither of us has sold any of our IMAX shares, other than an insignificant number of expiring options, in over a dozen years. We have adopted these plans solely for liquidity, tax planning and diversification purposes and to ensure the highest level of integrity in the trading of IMAX stock with the goal of minimizing any market impact of this diversification."
About IMAX Corporation
IMAX Corporation is one of the world's leading entertainment technology companies, specializing in immersive motion picture technologies. The worldwide IMAX network is among the most important and successful theatrical distribution platforms for major event Hollywood films around the globe, with IMAX(R) theatres delivering the world's best cinematic presentations using proprietary IMAX, IMAX(R) 3D, and IMAX DMR(R) technology. IMAX DMR is the Company's groundbreaking digital re-mastering technology that allows it to digitally transform virtually any conventional motion picture into the unparalleled image and sound quality of The IMAX Experience(R). The IMAX brand is recognized throughout the world for extraordinary and immersive entertainment experiences for consumers. As of September 30, 2009, there were 403 IMAX theatres (280 commercial, 123 institutional) operating in 44 countries.
IMAX(R), IMAX(R) 3D, IMAX DMR(R), Experience It In IMAX(R), An IMAX 3D Experience(R) and The IMAX Experience(R) are trademarks of IMAX Corporation. More information about the Company can be found at www.imax.com. You may also connect with IMAX on Facebook (www.facebook.com/imax), Twitter (www.twitter.com/imax) and YouTube (www.youtube.com/imaxmovies).
The IMAX Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6469
This press release contains forward looking statements that are based on management's 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 affect these statements include, but are not limited to, general economic, market or business conditions, including the length and severity of the current economic downturn, the opportunities that may be presented to and pursued by the Company, the performance of IMAX DMR films, conditions in the in-home and out-of home entertainment industries, the signing of theatre system agreements, changes and developments in the commercial exhibition industry, the failure to convert theatre system backlog into revenue, investments and operations in foreign jurisdictions, foreign currency fluctuations and the Company's prior restatements and the related litigation and ongoing inquiries by the SEC and the OSC. These factors and other risks and uncertainties are discussed in the Company's most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q.