MONTREAL, Dec. 6, 2017 /PRNewswire/ - Dollarama Inc. (TSX: DOL) ("Dollarama" or the "Corporation") announced today that it intends to purchase common shares for cancellation under a specific share repurchase program (the "Program"). The Program will form part of Dollarama's normal course issuer bid announced on June 7, 2017, which provides authorization for the purchase of up to 5,680,390 common shares during the 12-month period from June 19, 2017 to June 18, 2018 (the "NCIB").
Dollarama entered into a program agreement (the "Agreement") with a third party to repurchase common shares through daily purchases that will take place between December 11, 2017 and January 25, 2018, subject to a maximum of 437,000 common shares for the Program. Pursuant to the terms of the Agreement, and subject to the conditions of an issuer bid exemption order issued by the Ontario Securities Commission (the "Order"), an affiliate of the third party will purchase common shares on Canadian markets, and an equal number of common shares will be sold that same day by the third party to Dollarama for the purpose of fulfilling the third party's delivery obligations under the Agreement. The price that Dollarama will pay for any common shares purchased by it from the third party will be negotiated by Dollarama and the third party, and 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.
Dollarama currently intends to purchase the maximum of 437,000 common shares under the Program. However, the number of common shares actually purchased may be less than the Program maximum if, among other things, it is not possible to purchase common shares within the price range established by Dollarama during the term of the Program, if trading is suspended, or as a result of other market factors. A press release setting out the number of common shares acquired by Dollarama under the Program and the aggregate dollar amount paid for such common shares will be issued and filed immediately following the completion of the Program.
Pursuant to the terms of the Agreement and the Order, all purchases made by the affiliate of the third party on the Toronto Stock Exchange ("TSX") and other Canadian markets pursuant to the Program will be made in accordance with the TSX rules applicable to the NCIB, subject to limited exceptions as provided in the Order, and all common shares purchased by Dollarama from the third party will be cancelled. Dollarama will be prohibited from purchasing any other common shares during the term of the Program.
This news release may contain forward-looking statements. Forward‑looking statements are based on information currently available to management and on estimates and assumptions made by management in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management believes 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 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 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 the Corporation; 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 December 6, 2017, and management has no intention and undertakes 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.
Dollarama is a recognized Canadian value retailer offering a broad assortment of everyday consumer products, general merchandise and seasonal items. Our 1,135 locations across Canada 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, fixed price points up to $4.00.
SOURCE Dollarama Inc.