TORONTO, ONTARIO--(Marketwire - Feb. 11, 2013) - Danier Leather Inc. (TSX:DL) ("Danier" or 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 in respect of its subordinate voting shares (the "Shares").
As of February 11, 2013, the Corporation had 2,641,839 Shares issued and outstanding. The notice provides that the Corporation may, during the 12-month period commencing February 14, 2013 and ending February 13, 2014, or such earlier date as the Corporation may complete its maximum purchases under the bid, repurchase on the facilities of the TSX up to 148,211 Shares, being approximately 10% of the Corporation's public float of 1,482,112 Shares as of February 11, 2013. For these purposes, the "public float" is calculated as the number of outstanding Shares less any Shares held by the Corporation's senior officers and directors and by shareholders that own 10% or more of the Shares. Daily purchases of Shares will not exceed 1,149 Shares, subject to the Corporation's ability to make "block" purchases in accordance with the TSX rules. The Shares will be purchased on behalf of the Corporation by a registered broker through the facilities of the TSX or alternative Canadian trading platforms. The price paid for any repurchased Shares will be the market price at the time of acquisition, and the actual number of Shares which may be purchased and the timing of any such purchases will be determined by the Corporation's management, in accordance with the TSX rules.
Under its previous normal course issuer bid undertaken with the approval of and pursuant to the rules of the TSX, the Corporation purchased a total of 125,000 subordinate voting shares through the facilities of the TSX at a weighted average price per Share of approximately Cdn$11.44. The Corporation's previous normal course issuer bid commenced on May 9, 2011 and expired on May 8, 2012. Subsequently, under a "modified Dutch auction" substantial issuer bid commenced by the Corporation on October 24, 2012 and successfully completed on November 28, 2012, the Corporation purchased for cancellation a total of 787,401 Shares at a purchase price of Cdn$12.70 per Share. The substantial issuer bid was conducted in accordance with applicable Canadian securities laws relating to "formal issuer bids".
The Corporation's directors have concluded that the purchase of Shares at prevailing market prices may, from time to time, be a worthwhile investment for the Corporation and an appropriate use of a portion of its cash on-hand, and also provides shareholders with an opportunity to realize on all or a portion of their investment, should they desire liquidity. Shares that are purchased pursuant to the bid will be cancelled, thereby enhancing the remaining shareholders' value by increasing their proportionate interests.
The Corporation's Shares are listed and posted for trading on the TSX.
Danier Leather Inc. is a leading integrated designer, manufacturer, distributor and retailer of high-quality fashion-oriented leather apparel and accessories. The Corporation's merchandise is marketed exclusively under the well-known Danier brand name and is available at its 90 shopping mall, street-front and power centre stores. Corporations and other organizations can obtain Danier products for use as incentives and premiums for employees, suppliers and customers through Canada Sportswear Corp. For more information about the Corporation and our products, see www.danier.com.
This press release may contain forward-looking information and forward-looking statements which reflect the current view of Danier with respect to the Corporation's objectives, plans, goals, strategies, future growth, results of operations, financial and operating performance and business prospects and opportunities. Wherever used, the words "may", "will", "anticipate", "intend", "expect", "estimate", "plan", "believe" and similar expressions identify forward-looking statements and forward-looking information. Forward-looking statements and forward-looking information should not be read as guarantees of future events, performance or results, and will not necessarily be accurate indications of whether, or the times at which, such events, performance or results will be achieved. All of the statements in this press release containing forward-looking statements or forward-looking information, if any, are qualified by these cautionary statements.
Forward-looking statements and forward-looking information are based on information available at the time they are made, underlying estimates, opinions and assumptions made by management and management's good faith belief with respect to future events, performance and results, and are subject to inherent risks and uncertainties surrounding future expectations generally. Among other things, readers are cautioned that there can be no assurance that Danier will repurchase any Shares under the bid, the bid may not have the intended effects or benefits anticipated, and further repurchases of Shares under the bid or otherwise may impact the trading price or liquidity of the Corporation's Shares.
For additional information with respect to these and other risks and uncertainties applicable to Danier and investments in its securities, reference should be made to Danier's continuous disclosure materials filed from time to time with the Canadian Securities Regulatory Authorities, including the Corporation's most recent annual information form, quarterly and annual reports and financial statements and notes thereto, and supplementary information, 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. Danier disclaims any intention or obligation to update or revise any forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.