Cineplex to sell Cineplex Digital Media for $70-million

Executive Summary

• Cineplex Inc. entered a definitive agreement to sell its digital place‑based media division, Cineplex Digital Media (CDM), to Creative Realities Inc. for $70 million cash.
• Proceeds will be used to strengthen the balance sheet, fund opportunistic share buybacks, reduce debt and support general corporate purposes (subject to existing debt covenants).
• Post‑sale, Cineplex will remain CDM’s exclusive advertising sales agent for CDM‑operated digital‑out‑of‑home networks across Canada.

Key Details

• Transaction Structure: Cash purchase of all issued and outstanding common shares of CDM; total consideration $70 million subject to customary post‑closing adjustments.
• Closing Timeline: Expected to close in the coming weeks, pending regulatory approvals and other standard closing conditions.
• Use of Proceeds: Immediate balance‑sheet strengthening, capital for opportunistic share repurchases, debt reduction, and general corporate purposes (with restrictions under current debt agreements).
• Ongoing Relationship: Long‑term agreement for Cineplex to act as CDM’s exclusive advertising sales agent for its digital‑out‑of‑home networks throughout Canada.
• Management Comment: Ellis Jacob, President & CEO, highlighted the strategic nature of the sale and its accretive impact on shareholder value.
• Investor Call: Conference call scheduled for Thursday, Oct. 16, 2025 at 10 a.m. EDT; webcast details provided for analysts and media.

Notable Quotes

“CRI's strong offer and this accretive transaction will provide us with meaningful capital to continue to deliver value for our shareholders.” – Ellis Jacob, President & CEO, Cineplex Inc.