DAVIDsTEA Provides Strategic Alternatives Update
March 22 2018 - 7:00AM
DAVIDsTEA Inc. (Nasdaq:DTEA) today provided an update on the
strategic alternatives process following the receipt of a letter
and press release from Rainy Day Investments Ltd. (“RDI”).
On March 19, 2018, RDI, a 46% shareholder of
DAVIDsTEA Inc., announced a slate of director nominees to DAVIDsTEA
for election to its Board of Directors at the annual meeting of
shareholders expected to be held in June 2018.
DAVIDsTEA’s board of directors is committed to
respecting the proper corporate governance process and will review
RDI’s proposed Board slate and interview the prospective candidates
who are unknown to the Board. In parallel, the special committee
continues to work with its financial advisor, William Blair &
Company L.L.C., and its outside legal advisors Ropes & Gray LLP
and Stikeman Elliott LLP to consider proposals for strategic
alternatives including, but not limited to, a potential
financing, refinancing, special dividend, restructuring,
merger, acquisition, joint venture, divestiture or disposition of
some or all of DTEA’s assets outside of the ordinary course of
business. The company has not yet received a proposal from
RDI.
“As we review RDI’s proposal, we will continue
to ensure that all shareholders are fairly represented on the
Board. The process to explore strategic alternatives remains in
place and represents the best way to assess the various options
available for our shareholders. Of equal importance, we are working
to ensure that DAVIDsTEA’s management team stays focused on
improving the operational and financial performance of the company
in order to maximize shareholder value,” stated DAVIDsTEA Chairman,
Maurice Tousson.
Forward-Looking Statements:This
press release includes forward-looking statements. These
forward-looking statements generally can be identified by the use
of words such as “anticipate,” “expect,” “plan,” “could,” “may,”
“will,” “believe,” “estimate,” “forecast,” “goal,” “project,” and
other words of similar meaning. These forward-looking statements
address various matters including management’s beliefs and plans
regarding the Company’s strategic direction. Actual events may
differ materially from these expectations due to risks and
uncertainties including the risks of undertaking a public strategic
process, the risks of a public proxy context as well as set forth
in the Company’s Annual Report on Form 10-K dated April 12, 2017
and filed with the Securities and Exchange Commission on April 13,
2017. Any forward-looking statement made by the Company in this
release speaks only as of the date on which the Company makes it.
The Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by any
applicable securities laws.
About DAVIDsTEA:DAVIDsTEA is a
retailer of specialty tea, offering a differentiated selection of
proprietary loose-leaf teas, pre-packaged teas, tea sachets and
tea-related gifts, accessories and food and beverages, primarily
through 236 company-operated DAVIDsTEA stores throughout Canada and
the United States as of October 28, 2017, and its website,
davidstea.com. The Company is headquartered in Montréal,
Canada.
Media Contact:MaisonBrison
CommunicationsRick
Leckner514.731.0000rickl@maisonbrison.com
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