Cineplex are authorized to issue an unlimitednumber of common shares (“AnnualInformation Form”).On March 24th, 2016 they have issued a total of 63,410,009 commonshares (“Annual InformationForm”). Common sharesare entitled to one vote per share at shareholder meetings (“Annual Information Form”). The Corporation is also authorized to issue10,000,000, preferred shares, none are outstanding (“Annual Information Form”). Preferred shareholders have such right andprivileges over common shareholders which are determined by the Board (“Annual Information Form”). Preferred shareholder do not have the rightto vote at Shareholder meetings (“Annual Information Form”).

They also have the right to liquidation ofassets, and payment of dividends and are entitled to this before commonshareholder whether voluntary or involuntary (“Annual Information Form”). Cineplex’s dividend policy and varies on factors such as the result oftheir operations, financial health of the company, number of businessopportunities, contractual restrictions, cash requirements and other factors (“Annual Information Form”). Cineplex declared a dividend of $8,575.Cineplex pays a monthly dividend and was increased to $0.

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13 per month per Share($1.56 on an annual basis) (“AnnualInformation Form”).Their credit faculties are repayable at full at maturity, with no scheduledpayment of credit prior to maturity date (“Annual Information Form”). The face value of current and long-term debtreflects fair value, as the debt bears floating interest at market rates (“Annual Information Form”). This is based on Canadian dollar prime ratesor bankers’ acceptance rates (“AnnualInformation Form”).The average interest rate on borrowingsunder the Credit Facilities was 2.85% for the year ended December 31, 2016 (“Annual Information Form”).

Cineplexpays a commitment fee on the daily unadvanced portion of the RevolvingFacility, which will varies based on certain financial ratios and was 0.28% atDecember 31, 2016 (“Annual InformationForm”). Long term debt ranges from $229,754 to $222,340 in 2014and 2015 respectively, and then to $297,496 in 2016. Return on Shareholders’ equity decreased from 15.69% to 9.08% from2015 to 2016 respectively (“Cineplex 2016 Annual Report”). As some Cineplex shareholders, its debt levels arehigh and return on equity is decreasing as years progress for shareholder’s,this is concern for shareholders because Cineplex is able to utilizeits borrowings efficiently in order to generate cash flow (“What You Must Know AboutCineplex Inc’s (TSX:CGX) Financial Strength”). But, its low liquidity raisesconcerns over whether short term obligations can be met in time, and raisingfurther debt to meet these expenses could be challenging in the future for theirshareholders (“What You Must Know About Cineplex Inc’s (TSX:CGX) Financial Strength”).

Its operating cash flow seems adequate to meet obligations which means its debtis being put to good use (“AnnualInformation Form”). However, the company may struggle to meetits near-term liabilities and should make changed to ensure that shareholdersare not worried about what they are buying shares in (“What You Must Know AboutCineplex Inc’s (TSX:CGX) Financial Strength”).