07:58:05 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Aimia Inc
Symbol AIM
Shares Issued 152,307,196
Close 2017-06-13 C$ 2.09
Market Cap C$ 318,322,040
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Aimia suspends payment of all dividends

2017-06-14 07:10 ET - News Release

Mr. David Johnston reports

AIMIA PROVIDES UPDATE ON DIVIDENDS

Aimia Inc.'s 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 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 officer. "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 Inc.

Aimia is a data-driven marketing and loyalty analytics company. It provides its 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 its 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.

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