DAVIDsTEA Creditors Approve CCAA Plan of Arrangement
12 June 2021 - 1:43AM
DAVIDsTEA Inc. (Nasdaq:DTEA) (“DAVIDsTEA” or the “Company”), a
leading tea merchant in North America, is pleased to announce
that its Plan of Arrangement under the Companies’ Creditors
Arrangement Act (“CCAA”) was approved today by the requisite
majorities of creditors of DAVIDsTEA and of DAVIDsTEA (USA) Inc.,
its wholly-owned U.S. subsidiary, respectively.
DAVIDsTEA will seek a sanction order for the
Plan of Arrangement from the Québec Superior Court at a hearing
scheduled for June 16, 2021. If the sanction order is granted,
DAVIDsTEA and DAVIDsTEA (USA) Inc. will seek recognition of the
sanction order from the United States Bankruptcy Court for the
District of Delaware under Chapter 15 of the United States
Bankruptcy Code at a hearing scheduled for June 17, 2021.
“We are very pleased that the CCAA process is
nearing completion and again express our appreciation to our
creditors for their understanding”, said Herschel Segal,
DAVIDsTEA’s Chairman and Founder.
As previously announced, the Plan of Arrangement
provides that DAVIDsTEA will distribute an aggregate amount of
approximately CDN $18.0 million to its creditors and
those of DAVIDsTEA (USA) Inc. in full and final settlement of all
claims affected by the Plan of Arrangement.
PricewaterhouseCoopers 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 it will
obtain a sanction order for the Plan of Arrangement from the Québec
Superior Court or that the sanction order, if any, will be
recognized by the United States Bankruptcy Court for the District
of Delaware.
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, 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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