IMAX Corporation, owner of the large format film theater chain, has
announced the closing of its strategic investment in Vancouver,
Canada-based Mainframe Entertainment Inc., a producer of CGI animation.
Under the terms of the agreement, IMAX invested CDN$8 million to acquire a
19% equity stake in Mainframe and CDN$8 million to acquire convertible
senior debt which, if converted, could bring IMAX's ownership up to 30% of
Mainframe. Simultaneously, Mainframe announced that two leading Canadian
financial institutions, Royal Bank Capital Corporation and Working
Opportunity Fund, have made a combined CDN$9 million investment to acquire
convertible notes in the company. IMAX and Mainframe have also established
a joint venture to co-produce 3D animated films for release to IMAX
Theatres and other markets. Their first film, GULLIVER'S TRAVELS, is
currently in production and is scheduled to be released to IMAX Theatres by
summer 2001. Other animated projects currently in development include films
based on THE PIED PIPER and PANDORA'S BOX. "We are convinced more than ever
that 3D animation will play a significant role in IMAX's future," said IMAX
co-Chief Executive Officers Brad Wechsler and Rich Gelfond. "Our
relationship with Mainframe allows us to create, produce and distribute our
own large-format 3D animation content cost-effectively and to then
cross-platform that content into other markets." IMAX continues to move
forward on its animation strategy. On January 1, 2000, The Walt Disney
Company will release FANTASIA 2000 exclusively in IMAX Theatres for four
months. IMAX is also in production on CYBERWORLD, a collection of computer
generated animated shorts, scheduled for release in summer 2000. Mainframe
Entertainment is the producer of television series such as REBOOT, BEAST
WARS - TRANSFORMERS, and WAR PLANETS and will debut its newest series,
WEIRD-OHS and BEAST MACHINES this fall on YTV in Canada and Fox Family
Channel and Fox Kids Network, respectively, in the U.S.