Imax reaches 2 financing deals to fund digital rollout

Imax shares jumped 49 cents, or 7.3 percent, to $7.17 in afternoon trading. The stock has traded between $3.72 and $7.94 during the past 52 weeks.

Imax's largest shareholder, the Douglas family, has agreed to buy about 2.7 million shares in a private placement for about $6.60 apiece. The family will own 19.9 percent of the company's common stock after the deal, which is expected to close on Thursday.

Also, Wachovia Capital Finance Corp. has agreed to extend the term of the company's existing credit facility to Oct. 31, 2010 and amend certain covenants. Imax said the amended terms allow the company to draw down about $24.4 million immediately. The company said it may be able to take down close to $30 million as its borrowing base increases under the terms of the agreement.

Imax said the deals are expected to provide the company with access to roughly $55 million to $60 million in funding, combined with cash on hand.

As a result of the agreements, Imax said it does not anticipate needing additional financing to fund the digital rollout.