Rainy Day Investments Comments on DavidsTea Press Release
March 23 2018 - 10:49AM
Rainy Day Investments Ltd. (“
RDI”), the principal
shareholder of DavidsTea Inc. (Nasdaq:DTEA), recently
announced that, in RDI’s opinion, DavidsTea should focus on turning
around its financial performance. RDI also announced that it
will not proceed with previously-announced plans to present a
proposal for an offer to buy out DavidsTea’s minority shareholders
and that it has no intention of selling its shares of DavidsTea at
this time. RDI subsequently announced that it has submitted a
slate of eight nominees to the Corporate Governance and Nominating
Committee of DavidsTea for election as the Board of Directors at
DavidsTea’s forthcoming annual meeting, with the competencies and
experience necessary for a turn-around of the
company.
RDI holds approximately 46% of the
issued and outstanding shares of DavidsTea.
In light of RDI’s clear statements, it was
surprised to read in a press release issued yesterday by DavidsTea
that the company “has not yet received a proposal from RDI”.
RDI has unequivocally stated that it will not present a proposal to
DavidsTea or its shareholders at this time. RDI was also
surprised to read in the press release that the special committee
of DavidsTea continues to work with its financial advisor and
outside legal advisors in the United States and Canada to consider
proposals for strategic alternatives.
Herschel Segal, President of RDI said, “I
will again state RDI’s position. We very much believe in
DavidsTea and its future. We believe DavidsTea should focus
on a turn-around of its financial performance. We have
submitted a slate of eight quality nominees dedicated to
accomplishing that objective. RDI will not make a proposal at
this time to buy out DavidsTea’s minority shareholders. We
have no intention of selling our shares of DavidsTea at this
time.
“In light of our clear statements about turning
around the financial performance of DavidsTea, why is the Board of
Directors continuing to spend time and company resources searching
for strategic alternatives?” Mr. Segal added.
RDI has advised DavidsTea that it expects the
current Board of Directors to maintain the status quo until the
annual meeting and refrain from taking any measures outside the
ordinary course of business. RDI has also advised DavidsTea
that its eight nominees are prepared to start serving as directors
immediately, so as to commence work on the turn-around of DavidsTea
even before the annual meeting.
“Last year, by this time, DavidsTea had
announced the date of the annual meeting. This year, we have
no news. RDI urges the Board to accelerate an orderly
transition to our slate of nominees. We are prepared to start
working immediately on a turn-around, for the benefit of all
shareholders”, Mr. Segal concluded.
For further information please contact:Mr.
Lorenzo SalvaggioVice-President and Chief Operating OfficerRainy
Day Investments Ltd.(514) 295-2353
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