Diversified Royalty Corp. Announces Completion of BMO Acquisition of Air MILES Reward Program Business and June 2023 Cash Dividend

VANCOUVER, British Columbia, June 05, 2023 (GLOBE NEWSWIRE) -- Diversified Royalty Corp. (TSX: DIV and DIV.DB.A) (the “Corporation” or “DIV”) is pleased to announce that on June 1, 2023 the Bank of Montreal (“BMO”) issued a news release (the “BMO News Release”) confirming BMO completed its previously announced acquisition of the AIR MILES Reward Program business from LoyaltyOne, Co. (the “AIR MILES Acquisition”). In addition, DIV is also pleased to announce that its board of directors has approved a cash dividend of $0.02 per common share for the period of June 1, 2023 to June 30, 2023, which is equal to $0.24 per common share on an annualized basis. The dividend will be paid on June 30, 2023 to shareholders of record as of the close of business on June 15, 2023.

BMO Completes Acquisition of Air Miles Reward Program Business

According to the BMO News Release, BMO completed the AIR MILES Acquisition on June 1, 2023. The BMO News Release described the AIR MILES Acquisition as a made-in-Canada opportunity to reinvigorate one of Canada’s most celebrated loyalty programs for all Canadians collecting AIR MILES Reward Miles, as well as partners across the country. The BMO News Release also noted that, in the coming months, AIR MILES plans to introduce a wide range of new program enhancements including:

• An improved travel booking platform featuring richer offers, more ways to book travel, and new ways for collectors to earn Miles.
• A new and innovative way for collectors to earn Bonus Miles in connection with eligible purchases through receipt scanning, rolling out first for collectors in Atlantic Canada with other regions to follow.
• New opportunities to earn and redeem Miles with top Canadian brands in categories including fashion, travel, grocery, meal delivery, home goods and technology.
• Leveraging AIR MILES’ industry-leading insights and technology to bring more value to the collector and partner experience.

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”). Prior to the AIR MILES Acquisition, AM LP licenced the AIR MILES Rights to LoyaltyOne, Co. 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”). In connection with the AIR MILES Acquisition, the AIR MILES Licences were assigned to, and assumed by, an affiliate of BMO, and remain in full force and effect. BMO has confirmed to DIV that the remaining uncollected Q1 2023 royalty income of approximately $0.8 million will be paid to AM LP in the near term.