By a News Reporter-Staff News Editor at Investment Weekly News -- Dollarama Inc. (TSX: DOL) ("Dollarama" or the "Corporation") announced that it received approval from the Toronto Stock Exchange ("TSX") respecting the renewal of its normal course issuer bid to purchase for cancellation up to
2,341,929 of its common shares, representing 3.5% of the
66,912,276 common shares issued and outstanding as at the close of markets on June 11, 2014.
The repurchase program - starting on June 17, 2014 and ending no later than June 16, 2015 - 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, 2013 and May 31, 2014, as calculated per the TSX rules, was 160,353 common shares. Consequently, under TSX rules, Dollarama will be allowed to purchase daily, through the facilities of the TSX, a maximum of 40,088 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. The shares purchased pursuant to the normal course issuer bid will be cancelled.
Purchases under the normal course issuer bid will be 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.
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.
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 NCIB 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 NCIB 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 normal course issuer bid expiring on June 16, 2014, Dollarama had purchased, as at the close of markets on June 11, 2014, a total of
6,326,488 common shares, representing 9.4% of the public float of
67,290,467 common shares as at May 31, 2013, at a weighted average price of $82.45 per common share. Additional common shares may be purchased and cancelled by Dollarama's designated broker under the APP up to and including June 16, 2014.
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.
Keywords for this news article include: Dollarama Inc., Finance and Investment.
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