CinemaOne Limited will be going back to its shareholders from this month to try and raise at least $6 million of new capital for the company following three consecutive years of losses incurred as a result of the COVID-19 pandemic.
On 3 November 2022, The T&T Securities and Exchange Commission approved CinemaOne’s Information Memorandum which detailed the company’s plan to raise a minimum of $6 million in equity capital via a Rights Issue of 1.6 million ordinary shares offered to existing shareholders only, the company’s latest audited financial report stated.
The Rights Issue is expected to successfully close this month.
“Pursuant to the approval of the Board Of Directors on August 11, 2022 and the Shareholders on August 12, 2022 to offer for subscription a Rights Issue to existing shareholders of 1,601,574 Ordinary Shares, and regulatory approvals having subsequently been obtained, the Board has fixed January 11, 2023 as the date (”Record Date”) for the determination of Shareholders who are entitled to receive the Company’s Information Memorandum providing the details of the Rights Issue in which each Shareholder will be entitled to purchase one share for every four shares held as of the Record Date,” a notice signed by CinemaOne’s Corporate Secretary Ingrid Jahra has stated.
The notice was yesterday posted by the T&T Stock Exchange.
In November 2018 CinemaOne, was the first company to be listed on the T&T Stock Exchange’s Small and Medium Enterprise.
At that time CinemaOne offered an initial 3,088,373 shares but sold 1,444,168 at $10 per share.
CinemaOne’s initial public offering therefore raised over $14 million but was under-subscribed by 53 per cent.
According to statistics from the T&T Stock Exchange, CinemaOne’s stock traded at a 52-week high of $8.20, and a 52-week low of $1.79.
CinemaOne enjoyed a resurgence in moviegoing last year, following the full relaxation of all government imposed COVID-19 Safe Zone operating restrictions on April 4, 2022.
CinemaOne recorded a 388 per cent increases in Gross Revenue to $10.1 million for the year ended September 30, 2022 when compared to the same period in 2021.
The company’s Net Loss was constrained to $1.4 million last year.
In 2021 the Net loss was $7 million.
“However, in FY 2022, consumers reinforced their desire to see the newest movie releases in a larger-than-life cinematic environment which continues to propel CinemaOne towards an accelerated recovery,” Brian Jahra stated in his latest chairman’s report.
“CinemaOne’s December 2022 opening of its second cinema site in Gulf City Mall, San Fernando, and its imminent capital markets activity which will infuse additional equity capital into the Company via a Rights Issue will position CinemaOne for newfound growth as it pragmatically pursues strategic opportunities,” he stated.
CinemaOne is set to take up residence at Price Plaza in Chaguanas this year in the location left vacant by the exit of MovieTowne in November 2020.