Moving iMage Technologies Inc. of Fountain Valley, a designer and maker of digital equipment for the cinema exhibition industry, has filed to go public on the New York Stock Exchange.
The company’s products and services “focus on the integration needs associated with high-quality motion picture exhibition,” the company said in paperwork related to the initial public offering. “We provide products for digital cinema, 3D, pre-show/alternative content and a variety of entertainment and educational applications.”
The initial public offering runs on the small side; the firm is aiming to raise a little more than $7 million in proceeds from the offering, the bulk of which will go to the expansion of the company’s sales and marketing activities.
The company expects the IPO to move ahead “as soon as practicable” after the filing is declared effective, according to a prospectus filed with the  U.S. Securities and Exchange Commission on Oct. 11.
Only one OC-based company has gone public via a traditional IPO this year; Irvine’s Kura Sushi USA (Nasdaq: KRUS) raised about $40 million in its August public listing.
Local Underwriters
The IPO’s funds would appear welcome for the firm, which has 42 workers and a local headquarters running 28,000 square feet.
For the fiscal year ended on June 30, net sales fell 20% to $20.3 million compared with the year-ago period, while the company reported a net loss of $35,000, down from a $577,000 profit in fiscal year 2018.
The filing comes at a sensitive time for larger IPOs. WeWork, a shared-office company, pulled its IPO and is fighting for cash to stay afloat, while investors have soured on unprofitable startups such as Uber.
Moving iMage CEO Glenn Sherman declined to comment to the Business Journal, saying the matter was “in a quiet period” before the IPO that plans to offer up to 2.1 million shares, priced between $4 and $4.50 each.
It has applied to list on the New York Stock Exchange under the ticker “MITQ.” The underwriters are WestPark Capital Inc. and Boustead Securities LLC, both based in Irvine.
Operating Plans
“We have significantly expanded our direct sales force to focus on sales to major cinema customers and have aligned our sales team’s compensation structure to fit this objective,” the company said in filings with the SEC. “We intend to pursue a greater proportion of large scale, recurring business transactions and to more effectively drive business customer engagement throughout the life of the relationship.”
The company’s prospectus also outlined expansion plans beyond the U.S. and Mexico.
“We believe geographic expansion represents a significant growth opportunity,” Moving iMage said. “Our goal is to replicate our United States and Mexico success across other international markets. We have customers in over 12 countries and plan to build our sales teams in Europe and Asia to further address these large markets.”
Last year, the company paid $2 million for Caddy Products Inc., a maker of cup holders, trays, advertising displays and theater aisle lighting.
