Cineplex Announces Strategic Sale of Cineplex Digital Media

Unlocks Value for Shareholders and Retains Exclusive Advertising Sales Agency Relationship for Digital-Out-of-Home Networks

TORONTO, Oct. 16, 2025 /CNW/ - (TSX: CGX) – Cineplex Inc., Canada's leading entertainment and media company, announced it has entered into a definitive agreement to sell its digital place-based media division, Cineplex Digital Media ("CDM"), to Creative Realities Inc. ("CRI"), a U.S.-based digital signage solutions and experiences company.

CRI will acquire all the issued and outstanding common shares of CDM for a total purchase price of $70 million in cash, subject to customary post-closing adjustments ("the Transaction"). The strength of the offer, followed by a thorough diligence process, positioned Cineplex to capitalize on a timely opportunity to divest and unlock meaningful value. The proceeds of the sale will immediately strengthen Cineplex's balance sheet and provide capital for opportunistic share buybacks, debt reduction and bolster resources for general corporate purposes subject to certain restrictions under its current debt agreements. The Transaction is expected to close in the coming weeks and is subject to regulatory approvals and other customary closing conditions.

As part of the Transaction, Cineplex has entered into a long-term agreement to continue as CDM's exclusive advertising sales agent for CDM operated digital-out-of-home networks across Canada.

"Over the past 16 years, Cineplex Digital Media has grown to be an industry leading and award-winning digital solutions company, operating some of the largest digital networks across North America. As we continued to grow CDM, we had said we would remain open to an opportunistic and strategic sale," said Ellis Jacob, President and CEO, Cineplex. "CRI's strong offer and this accretive transaction will provide us with meaningful capital to continue to deliver value for our shareholders."

Cineplex will host a conference call this morning to discuss this announcement in more detail.

Cineplex Inc. Investor Webcast:

Date:                                  Thursday October 16, 2025
Time:                                  10:00am Eastern Daylight Time
Audio Webcast:                 Audience URL https://events.q4inc.com/attendee/531854813

Please note, analysts who cover the Company should use the dial-in option to participate in the live question period: 1-226-828-7575 (Local) or 1-833-950-0062 (Canada Toll-free), access code 334964.

All attendees should join 5-10 minutes prior to the scheduled start time.  Media are welcome to join in listen-only mode.

About Cineplex

Cineplex (TSX:CGX) is a top-tier Canadian brand that operates in the Film Entertainment and Content, Amusement and Leisure, and Media sectors. Cineplex offers a unique escape from the everyday to millions of guests through its circuit of 171 movie theatres and location-based entertainment venues. In addition to being Canada's largest and most innovative film exhibitor, the company operates Canada's favourite destination for 'Eats & Entertainment' (The Rec Room), complexes specially designed for teens and families (Playdium), and an entertainment concept that brings movies, amusement gaming, dining, and live performances together under one roof (Cineplex Junxion). It also operates successful businesses in cinema media (Cineplex Media), digital place-based media (Cineplex Digital Media or CDM), alternative programming (Cineplex Events) and motion picture distribution (Cineplex Pictures). Providing even more value for its guests, Cineplex is a partner in Scene+, Canada's largest entertainment and lifestyle loyalty program.

Proudly recognized as having one of the country's Most Admired Corporate Cultures, Cineplex employs over 10,000 people in its offices and venues across Canada. To learn more, visit Cineplex.com.

Caution Regarding Forward-Looking Statements

Certain statements and/or information in this news release (identified by words such as "may", "will", "could", "should", "would", "suspect", "outlook", "believe", "plan", "anticipate", "estimate", "expect", "intend", "forecast", "objective" and "continue" (or the negative thereof)), and words and expressions of similar import, and similar expressions suggesting future events or future performance are intended to identify forward-looking statements. Such forward-looking statements are based on expectations and assumptions made by Cineplex and are subject to risks and uncertainties which may be beyond Cineplex's control. A comprehensive discussion of risks that may impact Cineplex can be found in Cineplex's public reports and filings, including those described in Cineplex's Annual Information Form ("AIF") and Management's Discussion and Analysis ("Annual MD&A") for the year ended December 31, 2024, which are both available under the Company's profile on Sedar+ (www.sedarplus.ca). The factors specified in Cineplex's public reports and filings, that may affect future operations and results, is not exhaustive. There are also risks that are inherent in the nature and benefits of the Transaction, including failure to satisfy the conditions to the completion of the Transaction and failure to obtain regulatory approval (or to do so in a timely manner). As a result of the foregoing, readers should not place undue reliance on the forward-looking information contained in this news release concerning the timing or benefits of the Transaction. Readers are cautioned that undue reliance should not be placed on forward-looking statements as actual operations and results may vary materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. Cineplex does not undertake to update, correct or revise any forward-looking statements as a result of any new information, future events or otherwise, except as may be required by applicable law.

SOURCE Cineplex

Investors: Rayhan Azmat, Vice President, Investor Relations, Corporate Development & Financial Planning and Analysis, [email protected]; Media: Michelle Saba, CPIR, Vice President, Communications, Cineplex, [email protected]