MONTREAL, June 8, 2016 /PRNewswire/ - 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 5,975,854 of its common shares, representing 5.0% of the 119,517,081 common shares issued and outstanding as at the close of markets on June 7, 2016, during the 12-month period starting on June 17, 2016 and ending no later than June 16, 2017.
The repurchase program 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, 2015 and May 31, 2016, as calculated per TSX rules, was 477,218 common shares. Consequently, under TSX rules, Dollarama will be allowed to purchase daily, through the facilities of the TSX, a maximum of 119,304 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.
Purchases under the normal course issuer bid may also be made by means other than open market transactions, 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. The shares purchased pursuant to the normal course issuer bid will be cancelled.
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 normal course issuer bid 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 normal course issuer bid 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 ongoing normal course issuer bid expiring on June 16, 2016, Dollarama repurchased so far a total of 9,422,031 common shares, representing 7.99% of the public float as at the close of markets on June 9, 2015, at a weighted average price of $85.65 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.
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 31, 2016 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 8, 2016 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.
Dollarama is a Canadian dollar store operator offering a broad assortment of everyday consumer products, general merchandise and seasonal items. Our 1,038 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 $3.00.
SOURCE Dollarama Inc.