Aimia Raises $32.5M and Announces Changes to its Board Amid Unsolicited Buyout Offer

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Aimia raises $32.5M and announces changes to its board

Aimia (AIM) has signed an agreement that will allow it to raise a maximum of $32.5 million through a private placement of shares and warrants that will be used to finance its activities and support its strategic investment plans.

The deal comes as the company faces an unsolicited buyout offer from its largest shareholder. Mithaq Canada, a wholly owned subsidiary of Mithaq Capital SPC, offered $3.66 per share in an offer that also includes closing down Aimia’s capital.

As part of the private placement announced Friday, before markets open, Aimia says it will issue a maximum of 10,475,000 shares and 10,475,000 share purchase warrants. The shares and related warrants will be issued at $3.10, while the warrants will be exercisable at $3.70 per share.

In a statement, Mithaq said Aimia’s transaction was “an unnecessary, dilutive private placement by a company that does not need additional money.”

Mithaq went on to argue that the deal was “nothing more than an attempt by Aimia’s board and management to entrench themselves and protect their jobs, rather than confronting the reality that the best option for shareholders is to accept Mithaq’s offer.

Aimia sold its flagship Aeroplan loyalty program to Air Canada in 2019 and reinvented itself as an investment holding company. Its shares fell 7 cents on Friday on the Toronto Stock Exchange, where they closed at $3.45.

The company says that assuming the private placement is fully subscribed and all warrants are exercised, the maximum number of shares that could be issued under the private placement would represent 24.89% of its currently outstanding shares on an undiluted basis.

In connection with and subject to the closing of the private placement, Aimia added that it would appoint Thomas Finke and Yannis Skoufalos as independent directors. Mr. Finke will also be named Chairman of the Board of Directors.

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