Danier Leather Inc.
TSX : DL

Danier Leather Inc.

May 05, 2009 16:36 ET

Danier Leather Renews Normal Course Issuer Bid

TORONTO, ONTARIO--(Marketwire - May 5, 2009) - 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 in respect of its subordinate voting shares.

The Corporation currently has 4,952,100 subordinate voting shares issued and outstanding. The notice provides that the Corporation may, during the 12-month period commencing May 7, 2009 and ending May 6, 2010, or such earlier date as the Corporation may complete its purchases under the bid, repurchase on the facilities of the TSX up to 267,183 subordinate voting shares, being approximately 10% of the Corporation's public float of 2,671,833 subordinate voting shares as of the date of the notice. Daily purchases of shares will not exceed 1,765 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, as of the date hereof, the Corporation purchased an aggregate of 100,000 subordinate voting shares through the facilities of the TSX at a weighted average price per subordinate voting share of Cdn.$4.60. The Corporation's previous normal course issuer bid commenced on May 6, 2008 and terminated on May 5, 2009.

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 89 shopping mall, street-front, and power centre stores, or through its corporate sales division. Danier's products are also available at the Dubai Mall and the Festival City Mall in Dubai. 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 that involve risks, estimates and uncertainties. Therefore, actual results may differ materially. Wherever used, the words "may", "will", "anticipate", "intend", "expect", "estimate", "plan", "believe" and similar expressions identify forward-looking statements and forward-looking information.

Examples of such risks and uncertainties include, but are not limited to, fashion and apparel and leather industry risks that can affect demand for the Corporation's products and inventory markdowns, a real or perceived slowdown in the general economy which can result in a reduction in consumer spending and can affect demand for the Corporation's products, 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, foreign currency and interest rate fluctuations which result in increased costs, leather availability and prices, disruptions in the credit markets, risks associated with foreign sourcing and manufacturing, existing and potential legal proceedings, and other associated risks with Danier's business. Danier cautions readers that this list of risks and uncertainties is not exhaustive and that should certain risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual events, performance and results may vary significantly from those expected. For additional information with respect to certain of these and other risks or 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, quarterly and annual reports, 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.

Forward-looking information and forward-looking statements 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. Any statements in this press release containing forward-looking information and forward-looking statements are qualified by these cautionary statements. 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.

Contact Information

  • Investor Relations Contact: Danier Leather Inc.
    Jeffrey Wortsman
    President and Chief Executive Officer
    (416) 762-8175 ext. 302
    (416) 762-7408 (FAX)
    leather@danier.com
    or
    Danier Leather Inc.
    Bryan Tatoff
    Senior Vice-President, Chief Financial Officer & Secretary
    (416) 762-8175 ext. 328
    (416) 762-7408 (FAX)
    bryan@danier.com
    www.danier.com