MONTREAL, Jan. 22, 2014 /PRNewswire/ - Dollarama Inc. (TSX: DOL) ("Dollarama" or the "Corporation") announced today that it received approval from the Toronto Stock Exchange ("TSX") to amend its normal course issuer bid ("NCIB") in order to increase the maximum number of common shares that may be repurchased from 3,364,523 common shares, or 5% of the public float as at May 31, 2013 (the reference date for the NCIB), to 6,729,046 common shares, or 10% of the public float. No other terms of the NCIB have been amended.
The NCIB - which began on June 17, 2013 and will end no later than June 16, 2014 - is conducted through the facilities of the TSX or alternative trading systems, if eligible, and conforms to their regulations. Purchases under the NCIB are 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.
Under TSX rules, Dollarama is allowed to purchase daily, through the facilities of the TSX, a maximum of 66,871 common shares representing 25% of the average daily trading volume, as calculated per the TSX rules. In addition, Dollarama may make, once per week, a block purchase of common shares not directly or indirectly owned by insiders of Dollarama, in accordance with TSX rules. All shares purchased pursuant to the NCIB are cancelled.
The automatic purchase plan agreement ("APP") entered into with a broker on June 12, 2013 also remains unchanged. The APP allows for the purchase of common shares under the NCIB at times when Dollarama ordinarily would not be active in the market due to self-imposed trading blackout periods. Outside of these pre-determined blackout periods, common shares are purchased in accordance with management's discretion.
During the period from June 17, 2013 to January 17, 2014, Dollarama purchased and cancelled a total of 3,027,218 common shares, representing 4.50% of the public float as at May 31, 2013, at a weighted average price of $77.42 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 847 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.
Certain statements in this news release about our current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify 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 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 the fiscal year ended February 3, 2013 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 news release are made as of January 22, 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.