Aimia Inc. - CEO, Jeremy Rabe
CEO, Jeremy Rabe
Image sourced: The Points Guy
  • A comprehensive settlement plan to shuffle the board of directors in loyalty rewards company Aimia has been put into effect
  • The plan, brokered back in September of 2019, was initiated after shareholders in Aimia voiced discontent with ongoing board movements
  • The shuffle has seen six members replaced, including the addition of shareholder Charles Frischer who was vocal in September alongside major shareholder Mittleman Brothers
  • The loyalty rewards company also released its financial round up for the final quarter of last year — revealing it managed to lower operating expenses by 45 per cent
  • Shares in Aimia on the Toronto Stock Exchange underwent a 0.31 per cent depreciation on Monday, closing at $3.24 each.

The spectacle of a relationship between loyalty rewards company Aimia and its major shareholder Mittleman Brothers has caused a major board shuffle.

Announced on Tuesday, Aimia (under a comprehensive settlement agreement with Mittleman) saw six members on its board of directors replaced.

New York based investment manager Mittleman Brothers has been a major shareholder in Aimia since 2017 after the split from Aeroplan in 2011.

September of 2019 was a whirlwind period for Aimia, with sudden movements in its board of directors upsetting Mittleman and its own shareholders. During this period, Mittleman held a 23 per cent stake in Aimia.

Announced on Tuesday, previous directors Thomas Gardner, Dieter Jentsch, Robert Kreidler, Linda Kuga Pikulin, William McEwan, and Frederick Mifflin have all stepped down.

Aimia’s new board of directors now comprises of Karen Basian, Charles Frischer, Sandra Hanington, Michael Lehmann, Philip Mittleman, Jeremy Rabe, David Rosenkrantz, and Jordan G. Teramo.

“We look forward to building on the strong foundation we have been provided by the previous board, and we thank them for their service,” new Chairman and existing shareholder Charles Frischer said.

“As a board with substantial insider ownership, we have a vested interest to see the company succeed and we remain committed to enhancing shareholder value for the benefit of all stakeholders.”

Charles played a role in the settlement agreement with Mittleman and Aimia back in September, voicing his concerns along with others at Aimia’s board movements at the time.

The loyalty rewards company also posted its round up for the fourth quarter of 2019 this week — lowering its losses to $4.9 million from a much larger $126.2 million on the year prior.

Operating expenses during the final quarter also dropped a whopping 45 per cent on the year, shrinking to $55.4 million.

“We had a good fourth quarter highlighted by an improvement in [earnings] and we delivered what we set out to achieve at the beginning of the year by substantially improving the operating and financial performance of our business,” Chief Executive Jeremy Rabe said.

These statistics bookend the fact that Aimia repurchased $125 million of its own shares during the year as well.

“Looking ahead, with the business now significantly stabilized, we are placing a sharper focus on our core capabilities to enable operating growth by building on Aimia’s strong loyalty technology platforms, leveraging our extensive brand recognition and deep industry knowledge from decades of experience as an operator,” Jeremy added.

Shares in Aimia on the Toronto Stock Exchange underwent a 0.31 per cent depreciation on Monday, closing at $3.24 each.

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