Danier Leather Inc.

Danier Leather Inc.

May 05, 2011 14:39 ET

Danier Leather Renews Normal Course Issuer Bid

TORONTO, ONTARIO--(Marketwire - May 5, 2011) - 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 Corporation currently has 3,528,806 subordinate voting shares issued and outstanding. The notice provides that the Corporation may, during the 12-month period commencing May 9, 2011 and ending May 8, 2012, or such earlier date as the Corporation may complete its maximum purchases under the bid, repurchase on the facilities of the TSX up to 176,440 subordinate voting shares, being approximately 5% of the Corporation's issued and outstanding 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 232,700 subordinate voting shares through the facilities of the TSX at a weighted average price per subordinate voting share of approximately Cdn.$8.49. The Corporation's previous normal course issuer bid commenced on May 7, 2010 and will expire on May 6, 2011.

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 and provides shareholders with an opportunity to realize on all or a portion of their investment, should they desire liquidity. 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, distributor and retailer of high-quality fashion-oriented leather and suede clothing 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 promotions for employees, suppliers and customers through Canada Sportswear Corp. For more information about the Corporation and our products, see www.danier.com.

Forward-Looking Information

Note: 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 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 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.

For information with respect to such risks or uncertainties, 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 annual information form, quarterly and annual reports and financial statements, 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, its business or its securities. 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.

Contact Information

  • Investor Relations Contact: Danier Leather Inc.
    Jeffrey Wortsman
    President and Chief Executive Officer
    (416) 762-8175 ext. 302
    (416) 762-7408 (FAX)

    Danier Leather Inc.
    Bryan Tatoff
    Senior Vice-President, Chief Financial Officer & Secretary
    (416) 762-8175 ext. 328
    (416) 762-7408 (FAX)