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Dollarama announces renewal of normal course issuer bid

DXJ

Canada NewsWire

MONTREAL, June 7, 2017 /CNW Telbec/ - Dollarama Inc. (TSX: DOL) ("Dollarama" or the "Corporation") announced today that it received approval from the Toronto Stock Exchange ("TSX") to renew its normal course issuer bid in order to purchase for cancellation up to 5,680,390 of its common shares, representing 5.0% of the 113,607,809 common shares issued and outstanding as at the close of markets on June 6, 2017, during the 12-month period starting on June 19, 2017 and ending no later than June 18, 2018.

Purchases will be conducted through the facilities of the TSX and through alternative trading systems, or by other means as may be permitted by the TSX, such as prearranged crosses, exempt offers and block purchases. Dollarama may also purchase common shares for cancellation by way of private agreements or specific share repurchase programs under issuer bid exemption orders issued by a securities regulatory authority. Purchases made on the open market through the facilities of the TSX and alternative trading systems will be at the prevailing market price at the time of acquisition. Purchases made by way of private agreement under an issuer bid exemption order issued by a securities regulatory authority will be at a discount to the prevailing market price at the time of the acquisition. Purchases made under a specific share repurchase program will be at a discount to the volume weighted average trading price of the common shares on the Canadian markets on the date of the purchase. All shares purchased pursuant to the normal course issuer bid will be cancelled.

The average daily trading volume of the common shares on the TSX over the period between December 1, 2016 and May 31, 2017, as calculated per TSX rules, was 346,664 common shares. Consequently, under TSX rules, Dollarama will be allowed to purchase daily, through the facilities of the TSX, a maximum of 86,666 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.

Under the ongoing normal course issuer bid expiring on June 16, 2017, Dollarama repurchased to date a total of 5,975,162 common shares, representing nearly 5.0% of all common shares issued and outstanding as at the close of markets on June 7, 2016, at a weighted average price of $100.78 per common share.

The Board of Directors of Dollarama believes that the purchase by Dollarama of its common shares continues to represent an appropriate and desirable use of its available cash to increase shareholder value.

Forward-Looking Statements

This press 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 actual results, level of activity, performance, achievements, future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, but not limited to, the factors discussed in the "Risks and Uncertainties" section of the Corporation's management's discussion and analysis (MD&A) for the fiscal year ended January 29, 2017 and in its continuous disclosure filings (available on SEDAR at www.sedar.com).

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 press release are made as at June 7, 2017 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 press release are expressly qualified by this cautionary statement.

About Dollarama

Dollarama is a Canadian dollar store operator offering a broad assortment of everyday consumer products, general merchandise and seasonal items. Our 1,108 locations across the country provide customers with compelling value in convenient locations, including metropolitan areas, mid-sized cities and small towns. Our quality merchandise is sold in individual or multiple units at select, low fixed price points up to $4.00.

www.dollarama.com

 

SOURCE Dollarama Inc.

View original content: http://www.newswire.ca/en/releases/archive/June2017/07/c1098.html



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