Dollarama Inc. announced that it received approval from the Toronto Stock Exchange (“TSX”) to renew its normal course issuer bid in order to purchase for cancellation up to 19,376,824 of its common shares, representing 7.5% of the public float of 258,357,662 common shares as at the close of markets on June 30, 2021, during the 12‑month period starting on July 7, 2021 and ending no later than July 6, 2022.
Purchases will be conducted through the facilities of the TSX and through alternative trading systems. Dollarama may also purchase common shares for cancellation by way of private agreements or specific share repurchase programs under issuer bid exemption orders issued by a securities regulatory authority. Purchases made on the open market through the facilities of the TSX and alternative trading systems will be at the prevailing market price at the time of acquisition. Purchases made by way of private agreement under an issuer bid exemption order issued by a securities regulatory authority will be at a discount to the prevailing market price at the time of the acquisition. Purchases made under a specific share repurchase program will be at a discount to the volume weighted average trading price of the common shares on the Canadian markets on the date of the purchase. All shares purchased pursuant to the normal course issuer bid will be cancelled.
The average daily trading volume of the common shares on the TSX over the period between January 1, 2021 and June 30, 2021, as calculated per TSX rules, was 761,443 common shares. Consequently, under TSX rules, Dollarama will be allowed to purchase daily, through the facilities of the TSX, a maximum of 190,360 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.
Under the normal course issuer bid which is set to expire on July 6, 2021, 15,548,326 common shares were sought and approved for purchase by the TSX. As at June 30, 2021, Dollarama had repurchased a total of 7,663,689 common shares thereunder, representing 2.46% of all common shares issued and outstanding as at the close of markets on June 30, 2020, at a weighted average price of $56.45 per common share. Such purchases were effected through the facilities of the TSX and alternative trading systems.
The Board of Directors of Dollarama believes that the purchase by Dollarama of its common shares continues to represent an appropriate and desirable use of its available funds to increase shareholder value.