D-BOX Technologies (TSX:DBO) shares spiked 10% higher this morning on news that Cineplex Entertainment (TSX:CGX) plans to roll-out 23 additional D-BOX motion systems to theatres across Canada.
Cineplex currently has 44 of their 163 theatres equipped with D-BOX Motion Seats. Today’s announcement indicates that Cineplex will be increasing the presents of D-BOX by more than 50% its current install base to 67 auditoriums.
“Last year premium movie experiences including D-BOX accounted for nearly 40 per cent of our box office revenue,” said Pat Marshall, Vice President, Communications and Investor Relations of Cineplex Entertainment. “So it is clear that Canadians seek premium entertainment options when going to the movies.”
More importantly Claude McMaster, President and CEO of D-BOX Technologies said, “D-BOX can expect increasing brand awareness and accelerated growth in all of its business segments. More so, with a unique positioning at the convergence of VIRTUAL REALITY.
“Yes that is correct, virtual reality!
Euro Pacific Canada recently initiated coverage of D-BOX saying the company’s market leadership and critical scale in motion controlled seats give it a natural entry into the world of virtual reality. Euro believes virtual reality (VR) based gaming and entertainment applications will in turn drive commercial and residential demand for integrated motion controlled capabilities where in-home adoption of streaming and OTTP providers offers new platform capabilities for D-BOX’s streaming and OTTP friendly delivery.