Digital Cinema IPO watch: Cinema operator Digital Cinema Destinations Corp announced on Tuesday that the company has decided to reduce the number of shares of Class A common stock offered in its IPO from the last month predicted 4.2 million to 2.3 million.
Digital Cinema did not mention the reason why it has decided to cut the number of Class A common stock issued in the IPO. The company said that despite the reduction in the expected number of shares offered, the previously proposed IPO price is constant, remaining at $6-$8 per share.
Digital Cinema currently operates three movie theaters. The company said it will use the proceeds collected from this public offering for repaying debts, initiating mergers and acquisitions and maintaining their daily operations including working capital.
According to the regulatory filing, the company boasted a net loss of $800,000 on revenue of $1.6 over the period from July 29, 2010 to June 30, 2011.
Digital Cinema proposed to trade on the NASDAQ Capital Market under the symbol for “DCIN.”
Digital Cinema filed the IPO registration statement with the U.S. SEC (Security And Exchange Commission) in December last year, expecting to raise funds of $23 million through the public offering.
Digital Cinema IPO