Dollarama announces renewal of its normal course issuer bid
MONTREAL, June 12, 2013
MONTREAL, June 12, 2013 /PRNewswire/ - Dollarama Inc. (TSX: DOL) ("Dollarama"
or the "Corporation") announced today that it received approval from the
Toronto Stock Exchange ("TSX") respecting the renewal of its normal course
issuer bid to purchase for cancellation up to 3,364,523of its common shares,
or 5% of the public float of 67,290,467 common shares as at May 31, 2013. As
at the same date, there were 73,161,732 common shares issued and outstanding.
The repurchase program - starting on June17, 2013 and ending no later than
June16,2014- will be conducted through the facilities of the TSX or
alternative trading systems, if eligible, and will conform to their
The average daily trading volume of the common shares over the period between
December1,2012 and May31, 2013, as calculated per the TSX rules, was
267,484common shares. Consequently, under TSX rules, Dollarama will be
allowed to purchase daily, through the facilities of the TSX, a maximum of
66,871common shares representing 25% of such average daily trading volume. In
addition, Dollarama may make, once per week, a block purchase (as such term is
defined in the TSX Company Manual) of common shares not directly or indirectly
owned by insiders of Dollarama, in accordance with TSX rules. The shares
purchased pursuant to the normal course issuer bid will be cancelled.
Purchases under the normal course issuer bid will be made by means of open
market transactions or such other means as the TSX or a securities regulatory
authority may permit, including pre-arranged crosses, exempt offers and
private agreements under an issuer bid exemption order issued by a securities
The price to be paid by Dollarama for any common share will be the market
price at the time of acquisition, plus brokerage fees, or such other price as
the TSX may permit. In the event that Dollarama purchases common shares by
pre-arranged crosses, exempt offers, block purchases or private agreements,
the purchase price of the common shares may be, and will be in the case of
purchases by private agreements, at a discount to the market price of the
common shares at the time of the acquisition.
Dollarama also announced that it has entered into an automatic purchase plan
agreement ("APP") with a broker to allow for the purchase of its common shares
under the NCIB at times when Dollarama ordinarily would not be active in the
market due to self-imposed trading blackout periods. Before entering into a
blackout period, Dollarama may, but is not required to, instruct the
designated broker to make purchases under the NCIB in accordance with the
terms of the APP. Such purchases will be determined by the broker in its sole
discretion based on parameters established by Dollarama prior to the blackout
period in accordance with TSX rules, applicable securities laws and the terms
of the APP. The terms of the APP have been pre-cleared by the TSX. Outside of
these pre-determined blackout periods, common shares will be purchased in
accordance with management's discretion.
Under the normal course issuer bid which will end on June 14, 2013, Dollarama
purchased and cancelled 2,583,264 common shares, representing 3.5% of the
common shares issued and outstanding as of June 1, 2012, at a weighted average
price of $60.36 per common share.
The Board of Directors of Dollarama believes that the purchase by Dollarama of
its common shares represents an appropriate and desirable use of its available
cash to increase shareholder value.
Dollarama is Canada's leading dollar store operator with 806 locations across
the country. Our stores provide customers with compelling value in convenient
locations, including metropolitan areas, mid-sized cities and small towns.
Dollarama aims to provide customers with a consistent shopping experience,
offering a broad assortment of everyday consumer products, general merchandise
and seasonal items. Products are currently sold in individual or multiple
units at select fixed price points up to $3.00.
This news release may contain forward-looking statements. Forward-looking
statements are based on information currently available to us and on estimates
and assumptions made by us in light of our experience and perception of
historical trends, current conditions and expected future developments, as
well as other factors that we believe are appropriate and reasonable in the
circumstances, but there can be no assurance that such estimates and
assumptions will prove to be correct. Many factors could cause our actual
results, level of activity, performance or achievements or future events or
developments to differ materially from those expressed or implied by the
forward-looking statements, including, without limitation, the following
factors, which are discussed in greater detail in the "Risks and
Uncertainties" section of the Corporation's management's discussion and
analysis (MD&A) for Fiscal 2013 and in its continuous disclosure filings
(available on SEDAR at www.sedar.com): future increases in operating and
merchandise costs, inability to sustain assortment and replenishment of our
merchandise, increase in the cost or a disruption in the flow of imported
goods, disruption of distribution infrastructure, inventory shrinkage,
inability to renew store, warehouse, distribution center and head office
leases on favourable terms, inability to increase our warehouse and
distribution center capacity in a timely manner, seasonality, market
acceptance of our private brands, failure to protect trademarks and other
proprietary rights, foreign exchange rate fluctuations, potential losses
associated with using derivative financial instruments, level of indebtedness
and inability to generate sufficient cash to service our debt, interest rate
risk associated with variable rate indebtedness, competition in the retail
industry, current economic conditions, failure to attract and retain qualified
employees, departure of senior executives, disruption in information
technology systems, unsuccessful execution of our growth strategy, holding
company structure, adverse weather, natural disasters and geo-political
events, unexpected costs associated with our current insurance program,
litigation, product liability claims and product recalls, and environmental
and regulatory compliance.
These factors are not intended to represent a complete list of the factors
that could affect us; however, they should be considered carefully. The
purpose of the forward-looking statements is to provide the reader with a
description of management's expectations regarding the Corporation's financial
performance and may not be appropriate for other purposes; readers should not
place undue reliance on forward-looking statements made herein. Furthermore,
unless otherwise stated, the forward-looking statements contained in this news
release are made as of June12, 2013, and we have no intention and undertake
no obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as required by
law. The forward-looking statements contained in this news release are
expressly qualified by this cautionary statement.
SOURCE Dollarama Inc.
Michael Ross, FCPA, FCA
Chief Financial Officer and Secretary
NATIONAL Public Relations
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