The new terms, which also includes what they call “an adjusted financial forumula, will bring Imax screens to Regal venues in Lexington, Ky., Albuquerque, N.M., Fredericksburg, Va., Fort Lauderdale, Fla., and San Antonio, Texas.
“We believe in the strategic value Imax delivers to our business, which is why we’re increasing our Imax footprint and extending the length of our agreements for all of our Imax sites,” Regal CEO Amy Miles says.
The deal comes at a good time for Imax: Its shares are down 3.2% over the last 12 months as faced what B. Riley’s Eric Wold describes as “a less-than-robust film slate, difficult [year over year] box office comparisons and short-term China headwinds.”
The company’s shares are flat this morning while Regal is down about 1%.
Imax CEO Richard Gelfond says the deal with Regal “is a testament to Regal’s continued commitment to Imax as it extends all leases under the current joint venture agreement by two years with no theatres now due for renewal until the beginning of 2021.”
He adds that the company had “more domestic theatre signings [last year] than any year since 2011.”
Wanda Group-controlled AMC Entertainment, now the world’s biggest exhibition chain, is the biggest domestic user of Imax screens.