DAVIDsTEA Obtains Recognition Order from U.S. Bankruptcy Court for Plan of Arrangement and Will Fund Court-appointed Monitor ...
June 17 2021 - 9:21AM
DAVIDsTEA Inc. (Nasdaq:DTEA) (“DAVIDsTEA” or the “Company”), a
leading tea merchant in North America, is pleased to announce
that it has obtained an order (the “Recognition Order”) from the
United States Bankruptcy Court for the District of Delaware
recognizing a sanction order (the “Sanction Order”) issued
yesterday by the Québec Superior Court, all in connection with
DAVIDsTEA’s plan of arrangement (the “Plan of Arrangement”) under
the Companies’ Creditors Arrangement Act (“CCAA”). The Recognition
Order was issued under Chapter 15 of the United States
Bankruptcy Code.
DAVIDsTEA will now fund PricewaterhouseCoopers
(“PwC”), the Court-appointed Monitor in the CCAA proceedings, with
approximately CDN $18 million for distribution to the
creditors of DAVIDsTEA and of DAVIDsTEA (USA) Inc., its
wholly-owned U.S. subsidiary, in full and final settlement of all
claims affected by the Plan of Arrangement. The funding of PwC will
complete DAVIDsTEA’s legal obligations under the Plan of
Arrangement.
As previously announced, the Plan of Arrangement
was approved on June 11, 2021 by the creditors of DAVIDsTEA
and of DAVIDsTEA (USA) Inc., respectively.
PwC is acting as Court-appointed Monitor in the
CCAA proceedings. All documents relating to the CCAA proceedings
are available at www.pwc.com/ca/davidstea. The Company will
continue to provide updates throughout the CCAA restructuring
process as events warrant.
Caution Regarding 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, in this press release “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
proceedings under the CCAA, the COVID-19 pandemic, our strategy of
transitioning to e-commerce and wholesale sales, future sales
through our e-commerce and wholesale channels, 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 discussed in Part
I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for
our fiscal year ended January 30, 2021, filed with both the United
States Securities and Exchange Commission and with the Autorité des
marchés financiers, and in our Quarterly Report on Form 10-Q, filed
with both the United States Securities and Exchange Commission and
with the Autorité des marchés financiers on June 15, 2021, which
could materially affect our business, financial condition or future
results.
About DAVIDsTEADAVIDsTEA offers
a specialty branded selection of high-quality proprietary
loose-leaf teas, pre-packaged teas, tea sachets, tea-related
accessories and gifts through its e-commerce platform at
www.davidstea.com and the Amazon Marketplace, its wholesale
customers which include over 2,500 grocery stores and pharmacies,
and 18 company-owned stores across Canada. We offer primarily
proprietary tea blends that are exclusive to the Company, as well
as traditional single-origin teas and herbs. Our passion for and
knowledge of tea permeates our culture and is rooted in an
excitement to explore the taste, health and lifestyle elements of
tea. With a focus on innovative flavours, wellness-driven
ingredients and organic tea, the Company launches seasonally driven
“collections” with a mission of making tea fun and accessible to
all. The Company is headquartered in Montréal, Canada.
Investor Contact |
Media Contact |
Maison Brison Communications |
PELICAN PR |
Pierre Boucher |
Lyla Radmanovich |
514-731-0000 |
514-845-8763 |
investors@davidstea.com |
media@rppelican.ca |
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