NEW YORK (TheStreet) -- IMAX Corp. (IMAX) - Get IMAX Corporation Report stock is down by 3.85% to $30.88 on heavy trading volume on Tuesday, after the company announced two investment funds extended their lockup agreement for IMAXChina's initial public offering.
Chinese investment fund CMC Capital Partners and private equity firm FountainVestPartners extended their lock-up agreement for three additional months, IMAX said in a statement. The lockup was set to expire on April 8.
As part of the agreement, the firms will sell 20 million shares of IMAX China before April 8, the company added. This will allow the firms to monetize their pre-IPO investment in IMAX China, according to IMAX.
"We were pleased to hear about this agreement because we believe that it will ensure an orderly transition of shares into the market and minimize potential volatility in the market for IMAX Chinashares around the expiration of the lock-up on April 8," Richard Gelfond, chairman of IMAX China and CEO of IMAX, said in a statement on Tuesday.
So far today, 1.88 million shares of IMAX have traded, versus the company's 30-day average of about 893,000 shares.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "buy" with a ratings score of B-. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: IMAX