IMAX Corporation Executives Adopt 10b5-1 Trading Plans
November 16, 2009 – 4:04 pmIMAX Corporation (Nasdaq:IMAX) (TSX:IMX) today announced that its Chief Executive Officer, Richard L. Gelfond, and its Chairman, Bradley J. Wechsler, have adopted stock trading plans in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934. Rule 10b5-1 permits officers and directors of public companies to adopt pre-determined plans for buying and selling specified amounts of stock if the plan is adopted at a time when the purchaser or seller is not aware of any material non-public information.
Under Mr. Gelfond’s 10b5-1 trading plan, he will be able to sell up to 720,000 shares in equal monthly installments over a 12-month period. The plan includes escalating minimum prices relating to the sale of shares over the course of the plan. Under Mr. Wechsler’s plan, he will be able to sell up to 900,000 shares, in equal monthly installments over a 10-month period. If all 1.62 million shares were to be sold throughout the duration of the plans, Mssrs. Gelfond and Wechsler would continue to own approximately 65% of their combined share ownership in the Company. In addition, Mssrs. Gelfond and Wechsler have put in place a plan to exercise approximately half of their stock appreciation rights at predetermined times and amounts over the duration of their 10b5-1 plans, which is designed to reduce the impact of these awards on the Company’s financial results.
Transactions under both plans will be disclosed publicly through Form 144 and Form 4 filings with the Securities and Exchange Commission.
In a joint statement, Mssrs. Gelfond and Wechsler said, “We believe strongly in IMAX and its prospects for continued growth and success. Neither of us has sold any of our IMAX shares, other than an insignificant number of expiring options, in over a dozen years. We have adopted these plans solely for liquidity, tax planning and diversification purposes and to ensure the highest level of integrity in the trading of IMAX stock with the goal of minimizing any market impact of this diversification.”
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