- Aimia invests $44 million in
the Trade X Group of Companies Inc. ("TRADE X"), an innovative
solutions provider to the global pre-owned car industry through
its B2B cross-border automotive trading platform
.
- Investment represents a 12.7% equity stake on a fully
diluted basis, based on a pre-money valuation of ~$314 million (US$250
million).
- Aimia's CEO, Phil Mittleman,
to join TRADE X's Board of Directors.
(All figures in Canadian dollars unless otherwise
noted)
TORONTO, July 27, 2021 /CNW/ - Aimia Inc. (TSX: AIM),
is pleased to announce that it has invested $44 million (US$35
million) as the lead investor of the current convertible
preferred shares funding round for TRADE X, a global B2B
cross-border automotive trading platform powered by its proprietary
TRADE X 'Brain' data and analytics technology, at a US$250 million pre-money valuation, resulting in
a 12.7% fully diluted equity stake. An additional US$10 million of convertible preferred shares may
be issued by TRADE X to other strategic investors in a subsequent
closing, to be held no later than August 6,
2021, to achieve its target round size of US$45 million.
For the 12-months ending December 31,
2020, TRADE X achieved gross vehicle sales of $65 million. Gross vehicle sales for the
six months to June 30, 2021 were
$77 million, generating positive
EBITDA. With recent sales volume activity demonstrating
strong momentum, sales are expected to trend higher in the second
half of 2021.
Aimia will benefit from customary preferred shareholder
protections, as well as Board representation. After giving effect
to the transaction, TRADE X's board of directors will consist of
five directors, of which one board seat will be occupied by Aimia's
CEO, Phil Mittleman.
Phil Mittleman, CEO of Aimia,
said: "We are very pleased to lead this funding round for TRADE
X. Their proprietary TRADE X 'Brain' technology allows
customers to trade vehicles cross-border with greater ease, and
less transactional risk than ever before. Already having
achieved EBITDA profitability, TRADE X boasts a blue-chip client
base, and is growing at a remarkable rate as it expands its market
reach to other countries. We are proud to partner with TRADE
X as they continue to grow their business organically, and through
acquisitions."
Ryan Davidson, Founder and CEO of
TRADE X, commented: "We are very excited about our partnership with
Aimia and their investment in our global automotive B2B trading
technology as we enter our next phase of growth. The
overriding global need for a unified automotive trading platform
has never been greater. Through its proprietary machine
learning, AI-driven data and analytics technology, TRADE X intends
to become the world's largest and most trusted vehicle trading
ecosystem. TRADE X will be able to expand its reach to even
further corners of the world, connecting buyers and sellers beyond
their borders to accelerate inventory turnover, add liquidity, and
boost profits."
About TRADE X
With headquarters based in Ontario,
Canada, TRADE X is the first global vehicle marketplace to
aggregate cross-border supply and demand for car dealers, fleet,
rental and mobility solution providers, as well as importers and
exporters, opening up new trading corridors to buy and sell
vehicles. The TRADE X 'Brain' platform is a machine-learning,
AI-driven technology that connects buyers and sellers through a
transparent and highly effective marketplace that aids sellers in
finding the world's highest bidders and gives buyers access to the
best source markets. Users benefit from the global network from
opportunities to capitalize on price arbitrage where global markets
command higher vehicle prices. TRADE X enables users to seamlessly
transact online in a quick and secure environment with all the
complexities of international trade – compliance, anti-money
laundering regulations, vehicle inspection, currency exchange,
digital trade documentation, payments and financing – all managed
by TRADE X. The company serves authorized buyers and sellers
everywhere with a user-friendly app available 24/7 via mobile,
tablet or desktop. TRADE X's largest investors include Aimia Inc.,
a publicly traded holding company listed on the Toronto Stock
Exchange (TSX: AIM), with a focus on long-term investments in
public and private companies, on a global basis, through
controlling or minority stakes. To learn more about TRADE X, please
visit: www.tradexport.com.
About Aimia
Aimia Inc. (TSX: AIM) is a holding company with a focus on
long-term investments in public and private companies, on a global
basis, through controlling or minority stakes.
The company operates an investment advisory business through its
wholly-owned subsidiary Mittleman Investment Management, LLC, and
owns a diversified portfolio of investments including a 48.9%
equity stake in PLM Premier, S.A.P.I. de C.V. (PLM), owner and
operator of Club Premier, the coalition loyalty program in
Mexico that operates the
Aeromexico Frequent Flyer program, a 48.7% equity stake in
Kognitiv, a B2B technology growth company enabling collaborative
commerce, a 12.7% equity stake in TRADE X, a global B2B
cross-border automotive trading platform, a 10.85% stake in Clear
Media Limited (100.HK), one of the largest outdoor advertising
firms in China, as well as
minority stakes in various public company securities.
For more information about Aimia, visit www.aimia.com.
Non-GAAP Financial Measures
Aimia and TRADE X considers "gross vehicle sales" and "EBITDA"
as useful information in measuring the financial performance and
condition of TRADE X. Such measures do not have a standardized
meaning prescribed by International Financial Reporting Standards
("IFRS") and therefore may not be comparable to similarly titled
measures presented by other companies, nor should it be construed
as an alternative to financial measures determined in accordance
with IFRS.
Forward-Looking Statements
This press release contains statements that constitute
"forward-looking information" within the meaning of Canadian
securities laws ("forward-looking statements"), which are based
upon our current expectations, estimated, projections, assumptions
and beliefs. All information that is not clearly historical in
nature may constitute forward-looking statements. In some cases,
forward-looking statements are typically identified by the use of
terms such as such as "anticipate", "believe", "could", "estimate",
"expect", "intend", "may", "plan", "predict", "project", "will",
"would", and "should". Forward-looking statements in this press
release include, but are not limited to, statements with respect to
our current and future plans, expectations and intentions.
Forward-looking statements, by their nature, are based on
assumptions and are subject to known and unknown risks and
uncertainties, both general and specific, that contribute to the
possibility that the forward-looking statement will not
occur. The forward-looking statements in this press release
speak only as of the date hereof and reflect several material
factors, expectations and assumptions. Undue reliance should not be
placed on any predictions or forward-looking statements as these
may be affected by, among other things, changing external events
and general uncertainties of the business. A discussion of the
material risks applicable to us can be found in our current
Management Discussion and Analysis and Annual Information Form,
each of which have been or will be filed on SEDAR and can be
accessed at www.sedar.com. Except as required by applicable
securities laws, forward-looking statements speak only as of the
date on which they are made and we disclaim any intention and
assumes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
SOURCE Aimia Inc.