Canadian exhibition giants Cineplex Entertainment and Empire Theatres have raised $115 million to convert 1600 screens countrywide to digital projection as part of their Canadian Digital Cinema Partnership.

The financing moves Canadian cinemas closer to completing their digital transition as Hollywood studios and major exhibitors stateside continue to debate who will pay to deploy digital projection technology on the other side of the border as part of the U.S. Digital Cinema Implementation Partners consortium.

Cineplex and Empire said their digital rollout will take place over 18 months.

The Bank of Nova Scotia was the lead arranger on the $115 million fundraising, with Blackstone acting as adviser for the joint venture.

In all, $80 million in bank financing was raised, with another $35 million coming from the two Canadian circuits.

The Canadian digital transition is key to the future of the domestic exhibitors as cinema-goers increasingly pay premium ticket prices to see 3D films and other digital attractions at the local multiplex.