MONTREAL, June 14, 2017 /CNW Telbec/ - Data-driven
marketing and loyalty analytics company Aimia Inc. (TSX: AIM) (the
"Company") today announced that its Board of Directors has
suspended payment of all dividends on both its outstanding common
shares and its Series 1, Series 2 and Series 3 Cumulative Rate
Reset Preferred Shares (collectively, the "Preferred Shares")
effective immediately. This includes the previously declared
dividends originally scheduled to have been paid on June 30, 2017, to shareholders of record as of
June 16, 2017.
Under paragraph 42 of the Canada Business Corporations
Act ("CBCA"), the Company's governing corporate statute,
there are two legal tests that must be met before any dividend can
be paid. The Company has concluded that it satisfies the solvency
test set forth at paragraph 42(a) of the CBCA.
However, due to a number of factors, the Company believes that
the capital impairment test set forth in paragraph 42(b) of the
CBCA would not be satisfied on June 30,
2017. These factors include the recent significant decline
in the Company's market capitalization following the May 11, 2017, non-renewal announcement by Air
Canada and the high amount of the stated capital account (currently
about $1.5 billion for common shares
and Preferred shares on a combined basis), primarily resulting from
past common share issuances at significantly higher prices than the
current market.
In the event the Company is able to pay the previously declared
dividends referred to above at a future date, the record date for
shareholders entitled to such payment remains June 16, 2017. Dividends on the outstanding
Preferred Shares are cumulative and will continue to accrue in
accordance with the rights, privileges, restrictions and conditions
attaching to each series of Preferred Shares.
"The Company currently has the requisite liquidity to pay these
dividends, however the statutory capital impairment test legally
prohibits us from doing so. Our business continues to perform well
and generate strong free cash flow. We reported $331.7 million of cash and cash equivalents,
restricted cash and short-term investments and $225.5 million of long-term investments in
corporate and government bonds as at March
31, 2017," said Robert E.
Brown, Executive Chairman, Aimia.
"The Company has been in active discussions with various parties
with a view to securing new long-term commercial and strategic
relationships post-2020. We believe we have a unique set of assets
that are highly valuable and compelling," said David Johnston, Aimia's Group Chief Executive.
"At the same time, the Company is also making progress on its plan
to remove a further $70 million of
costs from the Company through its business review and we will
provide further updates as developments warrant."
About Aimia
Aimia Inc. (TSX:AIM) is a data-driven marketing and loyalty
analytics company. We provide our clients with the customer
insights they need to make smarter business decisions and build
relevant, rewarding and long-term one-to-one relationships,
evolving the value exchange to the mutual benefit of both our
clients and consumers.
With about 2,300 employees across 15 countries, Aimia partners
with groups of companies (coalitions) and individual companies to
help generate, collect and analyze customer data and build
actionable insights.
We do this through our own coalition loyalty programs such as
Aeroplan in Canada, Nectar in the U.K., and Air Miles
Middle East, and through provision of loyalty strategy, program
development, implementation and management services underpinned by
leading products and technology platforms such as the Aimia Loyalty
Platform – Enterprise and Aimia Loyalty Platform – SaaS, and
through our analytics and insights business, including Intelligent
Shopper Solutions. In other markets, we own stakes in loyalty
programs, such as Club Premier in Mexico and Think Big, a
partnership with Air Asia and Tune Group. Our clients are diverse,
and we have industry-leading expertise in the fast-moving consumer
goods, retail, financial services, and travel and airline
industries globally to deliver against their unique needs.
For a full list of our partnerships and investments, and more
information about Aimia, visit www.aimia.com.
SOURCE AIMIA