DAVIDsTEA Obtains Initial Order Under Companies’ Creditors Arrangement Act
July 08 2020 - 5:03PM
DAVIDsTEA Inc. (Nasdaq:DTEA) (“DAVIDsTEA” or the “Company”), a
leading tea merchant in North America, announces that it has
obtained an Initial Order pursuant to the Companies’ Creditors
Arrangement Act (the “CCAA”) from the Québec Superior Court in
order to implement its previously-announced restructuring plan.
Among other things, the Initial Order provides for the appointment
of PwC as Monitor in the CCAA proceedings. As previously announced,
the Company will apply for a similar order for its wholly-owned
U.S. subsidiary under Chapter 15 of the United States
Bankruptcy Code.
A copy of the Initial Order and related
documents will be available at www.pwc.com/ca/davidstea. The
Company will provide updates throughout the restructuring process
as events warrant.
Cautionary Forward-Looking
Statements
This press release includes statements that
express our opinions, expectations, beliefs, plans or assumptions
regarding future events or future results and there are, or may be
deemed to be, “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995 (the “Act”).
The following cautionary statements are being made pursuant to the
provisions of the Act and with the intention of obtaining the
benefits of the “safe harbor” provisions of the Act. These
forward-looking statements can generally be identified by the use
of forward-looking terminology, including the terms “believes”,
“expects”, “may”, “will”, “should”, “approximately”, “intends”,
“plans”, “estimates” or “anticipates” or, in each case, their
negatives or other variations or comparable terminology. These
forward-looking statements include all matters that are not
historical facts and include statements regarding our intentions,
beliefs or current expectations concerning, among other things, our
restructuring process, the COVID-19 pandemic, our strategy of
transitioning to e-commerce and wholesale sales, future sales
through our e-commerce and wholesale channels, the closing of
certain of our retail stores, future lease liabilities, our results
of operations, financial condition, liquidity and prospects, the
impact of the COVID-19 pandemic on the global macroeconomic
environment, and our ability to avoid the delisting of the
Company’s common stock by Nasdaq due to the restructuring or our
inability to maintain compliance with Nasdaq listing
requirements.
While we believe these opinions and expectations
are based on reasonable assumptions, such forward-looking
statements are inherently subject to risks, uncertainties and
assumptions about us, including the risk factors set forth in our
annual report on Form 10-K for the fiscal year ended
February 1, 2020, filed with the United States Securities and
Exchange Commission and with the Autorité des marchés
financiers.
About DAVIDsTEA
DAVIDsTEA is a leading online retailer and
growing mass wholesaler of specialty tea, offering a differentiated
selection of proprietary loose-leaf teas, pre-packaged teas, tea
sachets and tea-related gifts and accessories through over 220
company-owned and operated retail stores in Canada and the United
States, as well as its e-commerce platform at www.davidstea.com. A
selection of DAVIDsTEA products is also available in over 2,500
grocery stores and pharmacies across Canada. The Company is
headquartered in Montréal, Canada
Investor Contact |
Media Contact |
MaisonBrison Communications |
PELICAN PR |
Pierre Boucher |
Lyla Radmanovich |
514-731-0000 |
514-845-8763 |
investors@davidstea.com |
media@rppelican.ca |
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