Danier Leather to buy back up to 148,211 shares
2013-02-11 16:19 ET - News Release
Mr. Bryan Tatoff reports
DANIER LEATHER LAUNCHES NORMAL COURSE ISSUER BID
The Toronto Stock Exchange has accepted a notice filed by Danier Leather Inc. of its intention to make a normal course issuer bid in respect of its subordinate voting shares.
As of Feb. 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 Feb. 14, 2013, and ending Feb. 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 per cent of the corporation's public float of 1,482,112 shares as of Feb. 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 per cent 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 $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 Oct. 24, 2012, and successfully completed on Nov. 28, 2012, the corporation purchased for cancellation a total of 787,401 shares at a purchase price of $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.
We seek Safe Harbor.