Dollarama announces specific share repurchase programs as part of normal course issuer bid
MONTREAL, April 10, 2017 /CNW Telbec/ - Dollarama Inc. (TSX: DOL) ("Dollarama" or the "Corporation") announced today that it intends to purchase common shares for cancellation under two specific share repurchase programs (the "Programs"). The Programs will form part of Dollarama's normal course issuer bid announced on June 8, 2016, which provides authorization for the purchase of up to 5,975,854 common shares during the 12-month period from June 17, 2016 to June 16, 2017 (the "NCIB"). Amendments to the Notice of Intention to Make a Normal Course Issuer Bid to provide for the ability of Dollarama to purchase common shares under specific share repurchase programs pursuant to issuer bid exemption orders issued by securities regulatory authorities were accepted by the Toronto Stock Exchange (the "TSX") on April 7, 2017.
Dollarama entered into program agreements (the "Agreements") with two third parties affiliated to one another to repurchase common shares through daily purchases that will take place between April 13, 2017 and April 27, 2017, subject to a maximum of 895,000 common shares for both Programs combined. Pursuant to the terms of the Agreements, and subject to the conditions of issuer bid exemption orders issued by the Ontario Securities Commission (the "Orders"), the third parties or their agents will purchase common shares on Canadian markets for the purpose of ultimately fulfilling the third parties' delivery obligations to Dollarama under the Agreements. The price that Dollarama will pay for any common shares purchased by it from each 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. Information regarding the number of common shares purchased and the aggregate price paid will be available on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com following the completion of each Program.
Pursuant to the terms of the Agreements and the Orders, all purchases made by the third parties or their agents on the TSX and other Canadian markets pursuant to the Programs will be made in accordance with the TSX rules applicable to the NCIB, subject to limited exceptions as provided in the Orders. In addition, Dollarama is prohibited from purchasing any other common shares during the term of the Programs. Dollarama will acquire common shares from the third parties pursuant to the Agreements as part of the NCIB, and such common shares will be cancelled upon purchase by Dollarama.
Forward-Looking Statements
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 April 10, 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.
About Dollarama
Dollarama is a Canadian dollar store operator offering a broad assortment of everyday consumer products, general merchandise and seasonal items. Our 1,095 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, fixed price points up to $4.00.
SOURCE Dollarama Inc.
