IMAX

(IMAX) - Get Report

, the wide-format movie theater chain, expects to raise a little more than $70 million from the sale of 9.8 million common shares to the public, the company said Tuesday.

The shares were priced at $7.15 apiece, below their opening level in Tuesday trading of $7.65. The stock has since fallen to $7.20 in late-morning action.

The company has been losing money for years as it paid for the expensive development a new kind of digital projector. It's looking for that investment to finally pay off this year, especially since it has a particularly robust slate of summer action movies, including

Star Trek

,

Transformers 2

, and

Night at the Museum 2

. The latter film grossed $5.4 million for IMAX when it opened over the long Memorial Day weekend.

The public offering of 9.8 million common shares is priced at $7.15 per share. Gross proceeds from the offering are expected to be approximately $70.1 million.

IMAX intends to use the net proceeds from the offering for the repayment of debt, including a portion of its 9 5/8% senior notes due December 2010, and for general corporate purposes.

IMAX has granted the underwriter an option to purchase up to an additional 1.47 million common shares at the public offering price, less the underwriting commission, within 30 days following pricing. The transaction is expected to close on or around June 5, 2009, subject to customary closing conditions.

IMAX, based in Ontario, said it will use the $70 million to pay down part of its debt, mostly senior notes due December 2010 that carry an interest rate of 9.63%. It will also use the money for the obligatory general corporate purposes.

The underwriter is the boutique investment firm Roth Capital Partners, which has an option to buy another 1.47 million shares at the offering price.

The offering will likely close on June 5.

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