Cineplex (CGX) Investor Update summary

Transaction overview

• Entered a definitive agreement to sell the digital place-based media business to Creative Realities Inc. for CAD 70 million in cash, subject to customary closing adjustments, unlocking value and strengthening the balance sheet.

• Cineplex Media will remain the exclusive advertising sales agent for all CDM-operated digital out-of-home networks in Canada, maintaining continuity in media operations through a long-term agreement.

• The transaction is expected to close in the coming weeks, pending regulatory approvals.

Financial impact and use of proceeds

• Sale price reflects a 10x multiple on 2025 estimated earnings, viewed as highly accretive.

• Up to CAD 18.5 million of proceeds may be used for share repurchases, with the remainder held until the debt call date of January 31, 2026, and options for debt repayment, further buybacks, or general corporate purposes after that, subject to indenture limits.

• CDM results will be classified as discontinued operations in Q3 filings, with related assets and liabilities grouped as held-for-sale.

Strategic rationale and process

• Sale aligns with ongoing efforts to optimize the balance sheet and focus on core operations, as CDM was the last B2B business.

• The process involved months of planning and was driven by opportunistic value creation for shareholders.

• The blended multiple reflects both higher-margin media and lower-margin hardware components of the business.