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(Reuters) - Data-driven marketing and loyalty analytics company Aimia Inc (AIM.TO) suspended all dividend payments on Wednesday, a month after Air Canada announced a plan to replace the company's loyalty program with its own.
Aimia's shares fell about 13 percent to C$1.65 in morning trading.
Aimia said it had failed to meet the capital impairment test under the Canada Business Corporations Act, a condition that needs to be satisfied by a company to pay dividends.
The company cited a number of factors for the failure to meet the test, including the loss of Air Canada contract that has led to a big drop in Aimia's shares
"The company currently has the requisite liquidity to pay these dividends, however the statutory capital impairment test legally prohibits us from doing so," Executive Chairman Robert Brown said in a statement.
Up to Tuesday's close, Aimia's shares have fallen 76.5 percent this year.
Reporting by Diptendu Lahiri in Bengaluru; Editing by Anil D'Silva