MONTREAL, June 12, 2014 /CNW Telbec/ - 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
2,341,929 of its common shares, representing 3.5% of the
66,912,276 common shares issued and outstanding as at the close of
markets on June 11, 2014.
The repurchase program - starting on June 17, 2014 and ending no later
than June 16, 2015 - will be conducted through the facilities of the
TSX or alternative trading systems, if eligible, and will conform to
their regulations.
The average daily trading volume of the common shares over the period
between December 1, 2013 and May 31, 2014, as calculated per the TSX
rules, was 160,353 common shares. Consequently, under TSX rules,
Dollarama will be allowed to purchase daily, through the facilities of
the TSX, a maximum of 40,088 common 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 regulatory authority.
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 renewed its 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 based
on management's discretion, in compliance with TSX rules and applicable
securities laws.
Under the normal course issuer bid expiring on June 16, 2014, Dollarama
had purchased, as at the close of markets on June 11, 2014, a total of
6,326,488 common shares, representing 9.4% of the public float of
67,290,467 common shares as at May 31, 2013, at a weighted average
price of $82.45 per common share. Additional common shares may be
purchased and cancelled by Dollarama's designated broker under the APP
up to and including June 16, 2014.
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.
About Dollarama
Dollarama is Canada's leading dollar store operator with 899 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.
Forward-Looking Statements
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 2014 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 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 warehouse and distribution
center capacity in a timely manner, seasonality, failure to maintain
brand image and reputation, market acceptance of 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 debt, changes in
creditworthiness and credit rating and the potential increase in the
cost of capital, interest rate risk associated with variable rate
indebtedness, competition in the retail industry, current economic
conditions, failure to attract and retain quality employees, departure
of senior executives, disruption in information technology systems,
inability to protect systems against cyber attacks, unsuccessful
execution of the growth strategy, holding company structure, adverse
weather, natural disasters and geo-political events, unexpected costs
associated with current insurance programs, litigation, product
liability claims and product recalls, and regulatory and environmental
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 June 12, 2014, 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.