Danier Leather Launches Normal Course Issuer Bid
TORONTO, ONTARIO -- (Marketwire) -- 02/11/13 -- Danier Leather Inc.
(TSX:DL) ("Danier" or the "Corporation") announced today that the
Toronto Stock Exchange (the "TSX") has accepted a notice filed by the
Corporation of its intention to make a normal course issuer bid in
respect of its subordinate voting shares (the "Shares").
As of February 11, 2013, the Corporation had 2,641,839 Shares issued
and outstanding. The notice provides that the Corporation may, during
the 12-month period commencing February 14, 2013 and ending February
13, 2014, or such earlier date as the Corporation may complete its
maximum purchases under the bid, repurchase on the facilities of the
TSX up to 148,211 Shares, being approximately 10% of the
Corporation's public float of 1,482,112 Shares as of February 11,
2013. For these purposes, the "public float" is calculated as the
number of outstanding Shares less any Shares held by the
Corporation's senior officers and directors and by shareholders that
own 10% or more of the Shares. Daily purchases of Shares will not
exceed 1,149 Shares, subject to the Corporation's ability to make
"block" purchases in accordance with the TSX rules. The Shares will
be purchased on behalf of the Corporation by a registered broker
through the facilities of the TSX or alternative Canadian trading
platforms. The price paid for any repurchased Shares will be the
market price at the time of acquisition, and the actual number of
Shares which may be purchased and the timing of any such purchases
will be determined by the Corporation's management, in accordance
with the TSX rules.
Under its previous normal course issuer bid undertaken with the
approval of and pursuant to the rules of the TSX, the Corporation
purchased a total of 125,000 subordinate voting shares through the
facilities of the TSX at a weighted average price per Share of
approximately Cdn$11.44. The Corporation's previous normal course
issuer bid commenced on May 9, 2011 and expired on May 8, 2012.
Subsequently, under a "modified Dutch auction" substantial issuer bid
commenced by the Corporation on October 24, 2012 and successfully
completed on November 28, 2012, the Corporation purchased for
cancellation a total of 787,401 Shares at a purchase price of
Cdn$12.70 per Share. The substantial issuer bid was conducted in
accordance with applicable Canadian securities laws relating to
"formal issuer bids".
The Corporation's directors have concluded that the purchase of
Shares at prevailing market prices may, from time to time, be a
worthwhile investment for the Corporation and an appropriate use of a
portion of its cash on-hand, and also provides shareholders with an
opportunity to realize on all or a portion of their investment,
should they desire liquidity. Shares that are purchased pursuant to
the bid will be cancelled, thereby enhancing the remaining
shareholders' value by increasing their proportionate interests.
The Corporation's Shares are listed and posted for trading on the
Danier Leather Inc. is a leading integrated designer, manufacturer,
distributor and retailer of high-quality fashion-oriented leather
apparel and accessories. The Corporation's merchandise is marketed
exclusively under the well-known Danier brand name and is available
at its 90 shopping mall, street-front and power centre stores.
Corporations and other organizations can obtain Danier products for
use as incentives and premiums for employees, suppliers and customers
through Canada Sportswear Corp. For more information about the
Corporation and our products, see www.danier.com.
This press release may contain forward-looking information and
forward-looking statements which reflect the current view of Danier
with respect to the Corporation's objectives, plans, goals,
strategies, future growth, results of operations, financial and
operating performance and business prospects and opportunities.
Wherever used, the words "may", "will", "anticipate", "intend",
"expect", "estimate", "plan", "believe" and similar expressions
identify forward-looking statements and forward-looking information.
Forward-looking statements and forward-looking information should not
be read as guarantees of future events, performance or results, and
will not necessarily be accurate indications of whether, or the times
at which, such events, performance or results will be achieved. All
of the statements in this press release containing forward-looking
statements or forward-looking information, if any, are qualified by
these cautionary statements.
Forward-looking statements and forward-looking information are based
on information available at the time they are made, underlying
estimates, opinions and assumptions made by management and
management's good faith belief with respect to future events,
performance and results, and are subject to inherent risks and
uncertainties surrounding future expectations generally. Among other
things, readers are cautioned that there can be no assurance that
Danier will repurchase any Shares under the bid, the bid may not have
the intended effects or benefits anticipated, and further repurchases
of Shares under the bid or otherwise may impact the trading price or
liquidity of the Corporation's Shares.
For additional information with respect to these and other risks and
uncertainties applicable to Danier and investments in its securities,
reference should be made to Danier's continuous disclosure materials
filed from time to time with the Canadian Securities Regulatory
Authorities, including the Corporation's most recent annual
information form, quarterly and annual reports and financial
statements and notes thereto, and supplementary information, which
are available on SEDAR at www.sedar.com and in the Investor Relations
section of the Corporation's website at www.danier.com. Additional
risks and uncertainties not presently known to the Corporation or
that Danier currently believes to be less significant may also
adversely affect the Corporation. Danier disclaims any intention or
obligation to update or revise any forward-looking information or
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable law.
Investor Relations Contact: Danier Leather Inc.
Senior Vice-President, Chief Financial Officer & Secretary
(416) 762-8175 ext. 328
(416) 762-7408 (FAX)
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