Dollarama Inc. said Dec. 6 that it plans to repurchase common shares for cancellation under a specific share repurchase program, which will form part of its normal course issuer bid previously announced June 7.
The Canadian discount retailer signed a program agreement with a third party to repurchase shares every day between Dec. 11 and Jan. 25, 2018, up to a maximum of 437,000 shares.
Under the terms of the agreement and subject to the conditions of an issuer bid exemption order issued by the Ontario Securities Commission, an associate of the third party will buy shares on the Canadian markets. The same day an equal number of shares will be sold by the third party to Dollarama to fulfill the third party's delivery obligations set out in the agreement. The price will be negotiated by Dollarama with the third party and will be at a discount to the volume weighted average trading price of the common shares on Canadian markets on the date of purchase.