Danier Leather Announces Results of Substantial Issuer Bid


Mar 09, 2010 - 08:10

TORONTO, ONTARIO--(Marketwire - March 9, 2010) - Danier Leather Inc. (TSX:DL) ("Danier" or the "Corporation") announced today the results of its modified "Dutch Auction" substantial issuer bid (the "Offer"), pursuant to which the Corporation offered to purchase for cancellation up to Cdn$7 million in value of its subordinate voting shares (the "Shares") from shareholders at a price of not less than Cdn$6.10 per Share and not more than Cdn$6.45 per Share. The Offer expired at 7:00 p.m. (Toronto time) on March 8, 2010.

A total of 1,845,592 Shares were validly deposited and not withdrawn under the Offer. Pursuant to the terms of the Offer, the Corporation has determined the purchase price to be Cdn$6.25 per Share. As the aggregate value of Shares deposited under the Offer exceeds the Cdn$7 million maximum value of consideration payable by the Corporation pursuant to the Offer, the Corporation will purchase for cancellation 1,120,000 Shares, and a pro-ration factor of 0.6088 will apply to deposited Shares (except for odd lot deposits, which are not subject to pro-ration), such that shareholders who deposited Shares at or below the purchase price of Cdn$6.25 per Share will have approximately 60.88% of the Shares they deposited purchased for cancellation. These Shares represent approximately 23.88% of the total Shares issued and outstanding as of March 8, 2010 and, following the purchase and cancellation of these Shares, approximately 3,569,940 Shares will remain outstanding.

The number of Shares validly deposited to the Offer and the pro-ration factor may be subject to adjustment should shareholders who delivered notices of guaranteed delivery fail to deliver certificates for such Shares within the required time period or should there be any other Shares invalidly deposited. Take-up and payment for all Shares validly deposited and accepted for purchase under the Offer will be made as soon as practicable in accordance with the Offer. The Shares deposited but not purchased, including Shares invalidly deposited, will be returned promptly by the depositary to the depositing shareholder.

The full details of the Offer are described in the Corporation's offer to purchase and issuer bid circular dated January 26, 2010, as well as the related letter of transmittal and notice of guaranteed delivery, copies of which are available on SEDAR at www.sedar.com.

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 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 additional 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. 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 under applicable securities laws.

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