Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago - before it skyrocketed by 1,211%! EMAIL ME. In legal terms, a Material Adverse Effect means any event, occurrence, fact, condition, or change that could reasonably be expected to become materially adverse to the business, such as results of operations, financial condition, assets, liabilities, or prospects. “Far from being unforeseen, the potential impact of the coronavirus was a significant factor discussed by the parties during their negotiation of the agreement,” the suit said. In a batle of competing statements on Friday, Cineplex claimed Cineworld's allegations of breached terms for their merger agreement amounted to "buyer's remorse" and an attempt to wriggle out of the transaction amid the COVID-19 crisis. A Material Adverse Effect is a common clause found in purchase agreements that could impact a deal’s closing. Coronavirus: Cineplex not requiring guests to wear masks when theatres reopen. Cineworld moved on June 12 to scrap its $1.6 billion acquisition … Cineworld's portfolio includes such brands as Regal, Picturehouse and Cinema City.
They also intend to “commence legal proceedings promptly against Cineworld” and “seek damages” for the company’s breach of contract.
Terms of Use | SCG filed its suit April 2, alleging CMX was using the coronavirus crisis as a pretext for backing out of the deal.
The Hollywood Reporter, LLC is a subsidiary of Prometheus Global Media, LLC. As of this writing, the stock is trading at $10.67. 3:45 PM PDT 6/12/2020 The Canadian-based company “vigorously denies Cineworld’s allegations.”, When the acquisition was first announced, Cineplex stated that the transaction would allow for its network of theatres to have access to “global opportunities” and compete with an “evolving entertainment landscape.”.
Cineplex on Friday filed a suit against Cineworld Group after the latter terminated a deal to acquire the Canadian exhibitor in June. One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting...
As a consequence of these matters and Cineplex’s unwillingness to cure the breaches, Cineworld has notified Cineplex that it has terminated the arrangement agreement with immediate effect. It’s also seeking compensation for the $664 million in debt and transaction expenses that Cineworld would have shouldered had the deal successfully closed, as well as repayment of certain “benefits” it received as part of the transaction. Cineworld’s repudiation of the arrangement agreement has been acknowledged by Cineplex and the transaction will not proceed," the Canadian company said. The statement says that Cineworld Group “delivered notice to Cineplex purporting to terminate the arrangement agreement among Cineplex and Cineworld.”, Cineplex argues, however, that Cineworld has “no legal basis to terminate the Arrangement Agreement” and says that the UK-based company has “breached its contractual obligations.”. The acquisition will therefore not proceed," the U.K.-based suitor said Friday in a statement. CMX cited the economic crisis precipitated by the coronavirus pandemic that has shuttered theaters throughout the U.S.
Cineplex said in early February that 52 potential buyers were contacted, three of which entered into confidentiality agreements, but the company did not receive a superior bid during the period. In announcing the deal on March 16, it said the SCG acquisition was a “perfect fit” and would bolster its “robust expansion plans in the U.S.”. The stock tanked when U.K.-based movie theatre operator Cineworld announced it no longer intends to move forward with its planned acquisition. © 2020 The Hollywood Reporter In the event of cancelling its merger, Cineworld's original deal document indicates it will be required to pay Cineplex a break fee of $49.9 million. In its own statement on Friday, Cineplex rebuffed Cineworld's claim that it had breached the terms of their merger agreement and said it will take legal action to recover damages as the transaction does not proceed.
The statement from Cineplex also explains that Cineworld alleged Cineplex to have “taken certain actions that constitute breaches” of the contract.
Daily Hive is a Canadian-born online news source, established in 2008, that creates compelling, hyperlocal content. Late last year, Cineworld agreed to acquire Cineplex at $34 per share.
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