DAVIDsTEA Obtains Amended and Restated Court Order under CCAA
July 16 2020 - 4:48PM
DAVIDsTEA Inc. (Nasdaq:DTEA) (“DAVIDsTEA” or the “Company”), a
leading tea merchant in North America, announces that the
Québec Superior Court today issued an Amended and Restated Initial
Order extending to September 17, 2020 the application of the
Initial Order obtained by DAVIDsTEA on July 8, 2020 under the
Companies’ Creditors Arrangement Act (Canada) (“CCAA”). The Amended
and Restated Initial Order also deals with certain administrative
matters. The Amended and Restated Initial Order and related
documents will be available at www.pwc.com/ca/davidstea.
At the request of Nasdaq, DAVIDsTEA also
confirms that it will not issue any new shares or create any new
classes of stock in its restructuring under the CCAA and that the
restructuring will not have an impact on DAVIDsTEA’s share
structure.
As previously announced, DAVIDsTEA’s
restructuring efforts under the CCAA are focused primarily on
exiting unprofitable stores and right-sizing its Canadian brick and
mortar footprint in the context of an increasingly challenging
retail environment, further exacerbated by the COVID-19 pandemic.
DAVIDsTEA’s objective is to create a leaner and more efficient
company and to accelerate its transition to an online retailer and
wholesaler of high-quality tea and accessories, better positioned
for long-term growth.
The Company will continue to 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 100
company-owned and operated retail stores in Canada, 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 |
Davids Tea (NASDAQ:DTEA)
Historical Stock Chart
From Aug 2024 to Sep 2024
Davids Tea (NASDAQ:DTEA)
Historical Stock Chart
From Sep 2023 to Sep 2024