Canadian exhibition chain Cineplex has announced it will commence legal proceedings against Cineworld and seek damages after the U.K.-based exhibitor pulled its $2.1 billion takeover deal.

Cineworld back away from the Cineplex agreement on June 12, citing alleged breaches of the merger agreement and a “material adverse effect” without providing details.

“Cineworld’s decision to abandon the transaction was a scenario that Cineplex had considered and planned for. Cineplex has developed a robust contingency plan for operating its business and improving its financial position on a go forward basis as one of Canada’s leading entertainment and media companies,” the company said.

The Cineplex acquisition agreement was initially announced in December. Cineplex operates 165 cinemas and is the dominant movie theater chain in the Canada.

Cineworld previously paid $3.6 billion for Regal Entertainment Group. The company said in December at the time that it planned to combine the operations of Cineplex and Regal to create the largest exhibitor in North America. Following completion, the new Cineworld would have had 11,204 screens globally and a combined 8,906 screens across the U.S. and Canada.

Cineplex also said Monday that it plans to reopen six theaters in Alberta on June 26 and resume business for the rest of its locations in early July.

“In all markets where Cineplex is permitted by government and health authorities, it plans to reopen as many of its locations as it can on July 3, 2020 (or as soon thereafter as permitted by law),” Cineplex said in a statement on Monday.

“During this time, Cineplex has been diligently preparing for their safe reopening with the health and safety of its employees and guests being its top priority,” the company said. “Cineplex has carefully reexamined all of its buildings and processes, so that when its theatres and entertainment venues reopen, it will have implemented an industry-leading program with end-to-end health and safety protocols. At Cineplex’s theatres specifically, it will also be launching reserved seating in all auditoriums across the country to ensure proper physical distancing between its guests.”