Company operations have come to a screaming halt during the pandemic. Cineplex has received 512 “underperform” votes. This was a company that was already highly leveraged, and was about to take on additional debt to acquire Cineplex.
In the short-to-medium term, it will be a fight for survival.
“Going concern” is an accounting term for a company with the resources to continue operating indefinitely. The firm also engages in digital commerce, food service, alternative programming, cinema media, digital place-based media, amusement solutions and an online e-sports platform for competitive and passionate gamers.
Cineplex asks Ontario to make changes to theatre occupancy limits. Then the pandemic hit, and the company’s share price cratered. Without Cineworld, the company’s ability to survive is centered on controlling cash burn. It is now about finding a way to survive until the economy can reopen. Let’s take a deeper dive into the quarterly conference call to find out. And as such, there is no certainty and accordingly we have included the going concern language in our financial statements.”To be honest, this is not all that surprising. The company had agreed to purchase Cineplex for $34.00 per share. However, their ability to execute on these events are unknown.
Cineplex Inc. engages in the theatre operations business. Please read the Returns since inception, October 2013. Not to alarm you, but you’re about to miss an important event.Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.This is your chance to get in early on what could prove to be very special investment advice.Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. On the bright side, management remains confident given the success others in the industry have had in securing financing. “As our peers and others have had successful financing events, we are confident that we will be able to deliver on this requirement prior to August 31, and as such the going concern would no longer be required assuming no other changes to the future outlook.” This is a tough question to answer. Cineplex has received 58.97% “outperform” votes from our community. (Add your “underperform” vote.) We recommend trying out cheaper alternatives like TransferWise. Cineplex Inc. engages in the theatre operations business. The company was founded in 1912 and is headquartered in Toronto, Canada. Given this, the company included the language around “going concern” along with first quarter results. Cineplex Inc., formerly known as Cineplex Galaxy Income Fund and Galaxy Entertainment Inc. is a Canadian entertainment company headquartered in Toronto, Ontario.
This rattled the markets. Show less Your money is always converted at the real exchange rate; making them up to 8x cheaper than your bank. Any hopes shareholders had of being acquired are now in the rear view mirror. Registration on or use of this site constitutes acceptance of our All rights reserved.