Cineplex (TSX:CGX), Canada’s largest chain of movie theatres, says it's delaying the release of its first-quarter financial results while it focuses on the business impact of the COVID-19 pandemic.
Cineplex said it will use "temporary blanket relief" provided by the Canadian Securities Administrators that gives the company an extension of up to 45 days for its financial results filings.
Cineplex will now report its results for the first quarter that ended March 31 by no later than June 29, which is a day before its $2.8-billion acquisition by U.K.-based Cineworld PLC expires. The purchase of Cineplex is still subject to several conditions, including approval under the Investment Canada Act.
Cineplex, like nearly all movie exhibitors, has faced a complete shutdown since mid-March. The company said it expects the COVID-19 pandemic will have a materially negative impact on its business for at least the first half of 2020.
But the company has noted that uncertainty around the extent of the viral spread, duration and severity, and government restrictions make it impossible to quantify the long-term financial hit.
