@tommy123
I read things this way
Div owns the rights - that has not changed
Excerpt here, underlining added
DIV’s wholly-owned subsidiary AM Royalties Limited Partnership (“AM LP”) owns the Canadian AIR MILES trademarks and certain related Canadian intellectual property rights (collectively, the “AIR MILES Rights”). AM LP licences the AIR MILES Rights to LoyaltyOne for use in the AIR Miles reward program business in Canada in accordance with the terms of two license agreements (collectively, the “AIR MILES Licenses”). As of the date of this news release LoyaltyOne is current in its royalty payments to AM LP under the AIR MILES Licences, which remain in force, with the most recent payment being made in January 2023. None of DIV, AM LP, or the AIR MILES Rights are subject to the CCAA or the Bankruptcy Court proceedings.
It is loyaltyone that is using the rights to run the airmiles program.
BMO is proposing to buy that program from loyaltyone - while also providing a $70 million credit facility with debtor in possession rights to loyaltyone, while also allowing loyaltyone to use these $$ to the parent through a debtor in possession of loyalty ventures through the $70 million faciltity
so BMO takes DIP ownership of loyaltyone. loyaltyone with this bailout from BMO through DIP takes control of its own parent through DIP and a $70m credit facility.
BMO becomes owner of the airmiles program (rights continue as is with DIV); loyaltyone continues as a DIP company now controlled by BMO; BMO now controls loyalty ventures through a subsidiary reverse takeover through the 2 DIP arrangements
Once the dust settles....this is a good thing for DIV - royalties continue through loyaltyone as the program continues with BMO the main partner, but BMO leveraging connections to correct the recent losses of partners (Sobeys, lcbo, pharma plus etc)
Or.... BMO approaches DIV to purchase the airmiles rights and trademarks outright - resulting in a huge one time infussion of cash for DIV