Imax Systems Corporation’s long search for a buyer has ended. And so has an era. The five principal partners of the Canadian company have sold their shares to former U.S. theatre owner Ted Mann. The amount of sale has not been disclosed. The sale is conditional on approval by Investment Canada.

Imax cofounder and principal partner Roman Kroitor does not expect major personnel changes and says he and the other shareholders will continue to work with Mann as consultants to help smooth the transition. He also expects that Imax projects currently in various stages of production and development will go forward.

Kroitor says he intends to continue to produce the large-format imax films, but he adds he has other projects in the mix.

Imax was founded in 1967 by Graeme Ferguson, Robert Kerr and Kroitor, who later teamed up with William Shaw to design the first Imax projector. The company not only produces large-format films, but has been involved in theatre consultation, and research and development of projection systems and cameras, optical printers and manufacturing. The company’s reported assets in 1990 were $50 million.

According to Victoria Dinnick, communications manager for Imax, the company’s revenues for 1992 were $75 million

Imax principals have been pounding the pavement for some time looking for major capital investment. Because the recoupment period for its films is in the range of five years, the company has traditionally relied heavily on sponsorship to raise production financing.

Recently, Imax tried to alter that formula by structuring some tax-shelter deals for individual projects and seeking capital investment through private placements.

Klinkhammer

In November 1990, Imax hired Fred Klinkhammer as president and ceo in the hope he could raise $40-$50 million from institutional or strategic investors. In June 1992, having made little headway, Klinkhammer resigned from the company.

Imax also began investing in longer format commercial projects such as Rolling Stones: At the Max and Titanica. Although At the Max and Titanica attracted large audiences where they played, the politics surrounding exhibition meant the box office potential of these films was not met, says Kroitor.

Not their mandate

Many imax/Omnimax theatres, which are attached to museums such as the Space and Rocket Centre in Huntsville, Ala., would not screen At the Max and Titanica because they felt these films did not meet their museums’ educational mandate.

In order to reach its potential, Imax needs to control more theatres, says Kroitor, and the only way it can do that is with a capital influx. ‘This was one of the ingredients in our decision (to sell),’ he says.

‘(The sale) is a complete surprise,’ says Scott Osborne, assistant director of the Space and Rocket Centre. ‘I’m sorry to hear this. I’ve always enjoyed working with those people. Imax is one of our major suppliers.’

Osborne says he hopes the company will continue to produce its space films. ‘As far as the longer length films,’ he says, ‘we would not play that because it doesn’t match our mission as a museum, and our market is not large enough to support such an expensive undertaking.’

Positive impact

‘I don’t think it will affect any of the staff or the theatre per se,’ says Peggy May, theatre director at Portage Place Imax Theatre in Winnipeg, a theatre that is owned by various government agencies and managed by Imax.

‘The only impact we may feel is of a positive nature, because we understand that Mr. Mann is going to be progressive in developing Imax further and is a producer by trade, so we are hoping for new product. We think it’s an exciting change.’

‘Ted Mann, from what I have read, is committed to maintaining the integrity of the Imax markets and museum networks,’ says Kathryn Seeley, sales and marketing manager of Vancouver-based Starboard Theatres, which is owned by Imax.

Mann produced several feature films in the ’70s, including Brubaker starring Robert Redford and Buster and Billie starring Jan-Michael Vincent. He bought the 276 independent theatre circuit National General Circuit and sold it to Paramount Pictures in 1986.