DAVIDsTEA to Hold Creditors’ Meeting on June 11, 2021 for CCAA Plan of Arrangement
May 07 2021 - 12:00PM
DAVIDsTEA Inc. (Nasdaq:DTEA) (“DAVIDsTEA” or the “Company”), a
leading tea merchant in North America, announces that it today
obtained an order from the Québec Superior Court authorizing the
Company to file its Plan of Arrangement under the Companies’
Creditors Arrangement Act (“CCAA”) and to call a creditors’ meeting
to be held on June 11, 2021 at 10 a.m. in virtual mode.
The Court order also extended to July 16, 2021 the
previously-announced stay of all proceedings against the Company
under the CCAA.
As previously announced, the Plan of Arrangement
to be submitted to creditors for approval on June 11, 2021
provides that DAVIDsTEA will distribute an aggregate amount of
approximately CDN $18 million to its creditors and those
of DAVIDsTEA (USA) Inc., the Company’s wholly-owned U.S.
subsidiary, in full and final settlement of all claims affected by
the Plan of Arrangement.
Under the CCAA, the Plan of Arrangement must be
approved by a simple majority of creditors of DAVIDsTEA and of
DAVIDsTEA (USA) Inc., voting separately, whose claims are affected
by the Plan of Arrangement, representing in each case at least
two-thirds in dollar value of all such claims duly filed in
accordance with the CCAA proceedings.
PwC is acting as Court-appointed Monitor in the
CCAA proceedings. All documents relating to the CCAA proceedings,
including the Plan of Arrangement, are available at
www.pwc.com/ca/davidstea. The Company will continue to provide
updates throughout the CCAA restructuring process as events
warrant.
DAVIDsTEA can provide no assurance that the
proposed Plan of Arrangement will be accepted by the respective
creditors of DAVIDsTEA Inc. and DAVIDsTEA (USA) Inc. on the terms
set out therein, or at all.
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, approval of the Plan of Arrangement by
the creditors of DAVIDsTEA Inc. and DAVIDsTEA (USA) Inc.,
respectively, by the requisite majorities, 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, 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 DAVIDsTEA, 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 accessible to a wide
audience. 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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