Danier Leather Inc.

Danier Leather Inc.

May 02, 2008 13:41 ET

Danier Leather Renews Normal Course Issuer Bid

TORONTO, ONTARIO--(Marketwire - May 2, 2008) - Danier Leather Inc. (TSX:DL) (the "Corporation") announced today that the Toronto Stock Exchange (the "TSX") has accepted a notice filed by the Corporation of its intention to make a normal course issuer bid.

The Corporation currently has 5,052,100 subordinate voting shares issued and outstanding. The notice provides that the Corporation may, during the 12-month period commencing May 6, 2008 and ending May 5, 2009, or such earlier date as the Corporation may complete its purchases under the bid, repurchase on the facilities of the TSX up to 292,638 subordinate voting shares, being approximately 10% of the Corporation's public float of 2,926,384 subordinate voting shares as of the date of the notice. Daily purchases of shares will not exceed 1,000 shares, subject to the Corporation's ability to make "block" purchases under the rules of the TSX. The price which the Corporation will pay for any such shares will be the market price at the time of acquisition. The actual number of subordinate voting shares which may be purchased and the timing of any such purchases will be determined by the Corporation, in accordance with the rules of the TSX.

Under its previous normal course issuer bid undertaken with the approval of and pursuant to the rules of the TSX, the Corporation purchased an aggregate of 292,500 subordinate voting shares through the facilities of the TSX at a weighted average price per subordinate voting share of Cdn.$9.39 during the 12-month period between April 23, 2007 and April 22, 2008.

The Corporation believes that the purchase of its subordinate voting shares at prevailing market prices may, from time-to-time, be a worthwhile investment for the Corporation. Subordinate voting shares that are purchased pursuant to the normal course issuer bid will be cancelled by the Corporation, thereby enhancing the remaining shareholders' value by increasing their proportionate interests.

The Corporation's subordinate voting shares are listed and posted for trading on the TSX.

About Danier

Danier Leather Inc. is a leading integrated designer, manufacturer, and retailer of high-quality leather and suede clothing and accessories. The Corporation's merchandise is marketed exclusively under the well-known Danier brand name and is available only at its 91 shopping mall, street-front, and power centre stores, or through its corporate sales division. Danier's products are also available at Festival City Mall in Dubai. For more information about the Corporation and our products, see www.danier.com.

Note: This press release may contain forward-looking statements that involve risks, estimates and uncertainties. Therefore, actual results may differ materially. Examples of such risks and uncertainties include, but are not limited to, those associated with fashion and apparel and leather industry risks that can affect demand for the Corporation's products and inventory markdowns, changes in consumer shopping patterns away from shopping malls and power centres, unseasonably hot weather or severe or unusual weather that prevents customers from going to the Corporation's stores, seasonality, heightened competition including new competitors and expansion of current competitors, domestic and foreign currency fluctuations which result in increased costs, and further impact leather availability and prices and consumer demand, risks associated with foreign sourcing and manufacturing, existing and potential legal proceedings, and other associated risks with Danier's business. For additional information with respect to certain of these and other risks and uncertainties, reference should be made to Danier's continuous disclosure materials filed from time to time with Canadian Securities Regulatory Authorities, including the Corporation's annual information form and 2007 annual report, which are available on SEDAR at www.sedar.com and in the Investor Relations section of the Corporation's website at www.danier.com. Additional risks and uncertainties not presently known to the Corporation or that Danier currently believes to be less significant may also adversely affect the Corporation. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at which, such performance or results will be achieved. Any statements in this press release containing forward-looking information are qualified by these cautionary statements. Danier disclaims any responsibility to update or revise such forward-looking statements whether as a result of new information, future events or otherwise.

Contact Information

  • Investor Relations Contact
    Danier Leather Inc., Bryan Tatoff
    Senior Vice-President, Chief Financial Officer & Secretary
    (416) 762-8175, ext. 328
    (416) 762-6072 (FAX)
    Email: bryan@danier.com
    Website: www.danier.com