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While Cineplex shares were up almost six per cent at $11.33 on Monday morning, it's still well off its pre-pandemic levels where it traded above the $30 mark in early 2020. In 2017, the stock had topped $50.

"Over the past year, we have had multiple meetings with the management team and have shared our views on value creation," Windward's chief investment officer Marc Chalfin said in the letter. "While we believe we are generally aligned, we are frustrated by the absence of a sense of urgency exhibited by the company’s leadership."

Windward, which owns about seven per cent of the outstanding shares of Cineplex, said the company could boost its share price by repurchasing a substantial portion of its shares over the next six quarters.

Buybacks often increase the price of a stock because they reduce the number of shares available on the open market.

Windward estimates the company could also raise more than $220 million by selling what it considers to be non-core assets like Cineplex's digital media business and Scene Plus loyalty program that could then be used to buy back shares.

By taking these steps, Windward's analysis suggests Cineplex could achieve a share price of about $30, or returns of nearly 200 per cent, by the end of 2026.

Windward said it's going public now with its urgings because it feels the film exhibition industry is "at an inflection point."

The period between April and July was the first time since 2019 that Cineplex delivered about $50 million in monthly box office revenues for four straight months, which Windward said suggests early momentum toward recovery. It also predicts the upcoming film slate, which includes the release of a "Wicked" sequel, "Toy Story 5" and another Super Mario movie, will "reignite the box office."

Cineplex CEO Ellis Jacob feels similarly.

"We welcome input from all our shareholders and agree the exhibition industry is at an inflection point and we are optimistic about Cineplex’s future," he said in an emailed statement.

He pointed out that the company is always reviewing opportunities to divest non-core assets and last week, renewed its normal course issuer bid, a process allowing publicly-traded companies to repurchase their own shares. 

"We are managing our capital prudently, as we have navigated five challenging years, while acting in the best interest of all stakeholders to maximize long-term value," Jacob said.

The last five years have seen Cineplex cope with the COVID-19 pandemic, which temporarily closed theatres, and the dissolution of a deal to sell itself to U.K. cinema chain Cineworld. 

It also dealt with two Hollywood strikes in 2023 that paused production on several big films and a Competition Bureau case accusing it of deceptive marketing.

This report by °µÍø½ûÇø was first published Aug. 25, 2025.

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