MONTREAL, Jan. 10, 2017 /CNW Telbec/ - 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 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").
Dollarama entered into a program agreement (the "Agreement") with a third party to repurchase common shares through daily purchases that will take place between January 13, 2017 and June 16, 2017, subject to a maximum of 1,123,000 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"), the third party or its agents will purchase common shares on Canadian markets for the purpose of ultimately fulfilling the third party's delivery obligations to Dollarama 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. 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 the Program.
Pursuant to the terms of the Agreement and the Order, all purchases made by the third party or its agents 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. In addition, Dollarama is prohibited from purchasing any other common shares during the term of the Program. Dollarama will acquire common shares from the third party pursuant to the Agreement as part of the NCIB, and such common shares will be cancelled upon purchase by Dollarama.
Dollarama has also implemented an automatic share repurchase plan with the third party and its agents to allow for the repurchase of common shares under the Program at times when Dollarama ordinarily would not be active in the market due to self-imposed trading blackout periods.
This news 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 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 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 news release are made as of January 10, 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 news 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 1,069 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.
For further information: Investors: Michael Ross, FCPA, FCA Chief Financial Officer, (514) 737-1006 x1237, firstname.lastname@example.org; Media: Lyla Radmanovich, (514) 845-8763, email@example.com; www.dollarama.com