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CINEPLEX ODEON CORPORATION ANNOUNCES THE COMPLETION OF SPECIAL WARRANT TRANSACTION

 CINEPLEX ODEON CORPORATION ANNOUNCES
 THE COMPLETION OF SPECIAL WARRANT TRANSACTION
 TORONTO, Aug. 28 /PRNewswire/ -- Cineplex Odeon Corporation (NYSE: CPX) announced today that it has completed the first stage of its approximately $45,000,000 Cdn. equity offering.
 The corporation has completed the sale to First Marathon Securities Limited and Gordon Capital Corporation of 13,277,700 special warrants at a subscription price per warrant of $2.50 Cdn. for total proceeds of $33,194,250 Cdn. The corporation has been advised that the ultimate investors acquiring the securities are primarily Canadian institutions. In addition, as part of the special warrant transaction, MCA INC. and the Charles Rosner Bronfman Trust, the two principal shareholders of the corporation, have entered into an agreement with the corporation to purchase 4,740,000 shares at a subscription price of $2.11 U.S. per share for aggregate subscription proceeds of $10,001,400 U.S. or approximately $11,850,000 Cdn.
 Under the terms of the special warrant transaction, the subscription proceeds have been deposited into an escrow account. Each special warrant entitles the holder to acquire one common share of the corporation at no additional cost. Upon qualification of a prospectus with certain regulatory authorities in Canada, the holders of these special warrants will automatically exercise their warrants and acquire common shares of the corporation and the proceeds will be released from escrow.
 Each of MCA and the Bronfman Trust will acquire their shares at the same time as the warrants are exercised by converting $5,000,700 U.S. of indebtedness owing to it into 2,370,000 subordinate restricted voting shares, in the case of MCA, and 2,370,000 common shares, in the case of the Bronfman Trust.
 MCA currently holds 40,477,361 subordinate restricted voting shares representing 48.55 percent of the outstanding equity securities of the corporation. After the completion of the transaction, MCA will own 42,847,361 subordinate restricted voting shares representing 42.26 percent of the outstanding equity securities of the corporation. The subordinate restricted voting shares of the corporation are convertible into common shares of the corporation in certain circumstances on a one-for-one basis.
 The Bronfman Trust and other members of the Claridge Group currently own an aggregate of 23,563,526 common shares representing 28.30 percent of the outstanding equity securities of the corporation. After completion of the transaction, the Bronfman Trust and the other members of the Claridge Group will own an aggregate of 25,933,526 common shares representing 25.58 percent of the outstanding equity securities of the corporation.
 Allen Karp, president and chief executive officer of the corporation, said "The completion of this stage of our equity offering continues the process of recapitalizing the corporation and significantly strengthening the corporation's financial position."
 Cineplex Odeon is one of North America's largest theater circuits with approximately 1,616 screens in 367 locations.
 -0- 8/28/92
 /CONTACT: Howard Lichtman, executive vice president-marketing and communications of Cineplex Odeon, 416-323-6634/
 (CPX) CO: Cineplex Odeon Corporation ST: Ontario IN: ENT SU:


SH -- NY023 -- 4313 08/28/92 10:56 EDT
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Publication:PR Newswire
Date:Aug 28, 1992
Words:518
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