Why Is Loyalty Ventures (LYLT) Stock Up 8% Today?

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  • Loyalty Ventures (LYLT) stock is rising even as its delisting approaches.
  • This follows a massive drop due to a bankruptcy filing.
  • Heavy trading is behind the rise in price on Wednesday.
LYLT Stock - Why Is Loyalty Ventures (LYLT) Stock Up 8% Today?

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Loyalty Ventures (NASDAQ:LYLT) stock is heading higher on Wednesday despite the company preparing to delist its shares.

Loyalty Ventures has alerted investors about its delisting plans and also intends to file a Form 25 for the act on March 20, 2023. The company has no intention of listing its shares on an alternative exchange once it leaves the Nasdaq.

Loyalty Ventures says the delisting decision was made to avoid keeping up with listing costs on the exchange. This comes as the company is trying to conserve cash as it goes through a Chapter 11 bankruptcy.

LYLT Stock Bankruptcy Details

Loyalty Ventures’s bankruptcy already have it planning to sell off parts of its business. That includes its AIR MILES Reward Program, which it intends to sell to the Bank of Montreal (NYSE:BMO). The company notes Bank of Montreal would continue to offer the program to loyalty members.

It’s worth noting that LYLT stock is seeing heavy trading volume on Wednesday as investors pump the shares up. This has some 3.2 million shares on the move as of this writing. To put that in perspective, the company’s daily average trading volume is closer to 2 million shares.

LYLT stock is up 8.3% in pre-market trading today but is down 92.8% since the start of the year.

Investors seeking more of the latest stock market news will want to stick around!

We’ve got all of the hottest stock market news traders need to know about on Wednesday! Among that is what has shares of Jounce Therapeutics (NASDAQ:JNCE) stock up, the biggest pre-market stock movers on Wednesday, and more. You can find all of that info at the following links!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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