Diversified Royalty announces amendment to AIR MILES licenses

Diversified Royalty (BEVFF) announced that its wholly-owned subsidiary AM Royalties Limited Partnership has entered into an amendment agreement (with Air Miles Loyalty and the Bank of Montreal (BMO) to amend the terms of the two license agreements pursuant to which the AIR MILES trademarks and related intellectual property are licensed to Air Miles. The terms of Licenses have been amended to provide a 10-year, fixed annual royalty payment of $3,925,000, paid quarterly. The royalty will grow at a rate of 2.42% per annum commencing on February 1, 2027, and each February 1st thereafter during the term. The royalty payments are now guaranteed by BMO. AM LP will have the right to sell, license or otherwise monetize the AIR MILES trademarks to any other party on or after February 1, 2032. Air Miles will have the right on or after February 1, 2032, to buy-out the remaining term of the Licenses and acquire the intellectual property related to the AIR MILES(R) Reward Program, but not the AIR MILES trademarks, for a cash payment equal to the net present value of the remaining royalty payments at such time.