Imax Corp. plans to sell up to $80.58-million (U.S.) worth of its common shares in a public offering and use the proceeds to reduce its debt.
The company, best known for its big-screen theatre technologies, said it's offering 9.8 million shares at $7.15 per share, for gross proceeds of $70.1-million.
In addition, the underwriter has the option to buy an additional 1.47 million common shares at the public offering price, which would bring in a further $10.5-million before fees.
Imax said it will use the net proceeds from the offering for the repayment of debt, including a portion of its 9 5/8 per cent senior notes due December, 2010.
The company's shares traded Tuesday at $7.78 (Canadian), down 49 cents, at the Toronto Stock Exchange and at $7.24, down 38 cents, on Nasdaq.