IMAX Corporation, owner of the large format film theater chain, hasannounced 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 a19% equity stake in Mainframe and CDN$8 million to acquire convertiblesenior debt which, if converted, could bring IMAX's ownership up to 30% ofMainframe. Simultaneously, Mainframe announced that two leading Canadianfinancial institutions, Royal Bank Capital Corporation and WorkingOpportunity Fund, have made a combined CDN$9 million investment to acquireconvertible notes in the company. IMAX and Mainframe have also establisheda joint venture to co-produce 3D animated films for release to IMAXTheatres and other markets. Their first film, GULLIVER'S TRAVELS, iscurrently in production and is scheduled to be released to IMAX Theatres bysummer 2001. Other animated projects currently in development include filmsbased on THE PIED PIPER and PANDORA'S BOX. "We are convinced more than everthat 3D animation will play a significant role in IMAX's future," said IMAXco-Chief Executive Officers Brad Wechsler and Rich Gelfond. "Ourrelationship with Mainframe allows us to create, produce and distribute ourown large-format 3D animation content cost-effectively and to thencross-platform that content into other markets." IMAX continues to moveforward on its animation strategy. On January 1, 2000, The Walt DisneyCompany will release FANTASIA 2000 exclusively in IMAX Theatres for fourmonths. IMAX is also in production on CYBERWORLD, a collection of computergenerated animated shorts, scheduled for release in summer 2000. MainframeEntertainment is the producer of television series such as REBOOT, BEASTWARS - TRANSFORMERS, and WAR PLANETS and will debut its newest series,WEIRD-OHS and BEAST MACHINES this fall on YTV in Canada and Fox FamilyChannel and Fox Kids Network, respectively, in the U.S.
