Aimia Agrees to Drop Shareholder Rights Plan
Aimia drops shareholder rights plan after tribunal ruling, ensuring company liquidity and retaining board appointments.
Aimia has made the decision to withdraw its shareholder rights plan after a Canadian capital markets regulator dismissed an attempt to cease trading Aimia's private placement of shares by hostile suitor, Mithaq Capital. This move by Aimia ensures additional liquidity for the company and allows recent board appointments to remain in place.
The Ontario Securities Commission's Capital Markets Tribunal recently ruled in favor of Aimia, dismissing Mithaq's application for an order to cease trading of Aimia's private placement. The tribunal also dismissed Aimia's cross-application regarding an exemption to purchases made by Mithaq of Aimia shares on October 5.
Aimia has agreed to revoke its latest shareholder rights plan with the issuance of the order. This plan was put in place by the Toronto-based company to prevent Mithaq from purchasing its shares before the hearing.
Despite these developments, Mithaq, who is already Aimia's largest shareholder, has stated its intention to buy additional Aimia shares in an attempt to take the company private. Mithaq has proposed an all-cash offer of 3.66 Canadian dollars ($2.73) per share, but Aimia's board has strongly advised shareholders to reject this bid.
In October, Aimia successfully raised C$32.5 million through a share sale to strategic investors. These funds will be used to support the company's operations over the next 12 to 24 months. Additionally, Aimia recently appointed Thomas Finke as its chairman and Yannis Skoufalos as a director, filling two vacancies on the board.