On June 8, 2022, Loyalty Ventures Inc. issued a press release disclosing that its AIR MILES Reward Program segment and AIR MILES’ Sponsor, Sobeys were unable to align on extension terms; consequently, Sobeys provided notice of its intent to exit the program on a region-by-region basis, beginning with Atlantic Canada, between August and the first quarter of 2023. Management is confident in AIR MILES’ ability to convert this development into a growth opportunity over the medium-term.
On this news, Loyalty Ventures’s stock price fell by as much as $5.68 per share, or over 51%, on during intraday trading on June 8, 2022, on unusually heavy trading volume, damaging investors.