MONTREAL, March 12, 2018 (GLOBE NEWSWIRE) -- Rainy Day Investments Ltd. (“RDI”), the principal shareholder of DavidsTea Inc. (Nasdaq:DTEA), announces that it intends to submit a slate of nominees to DavidsTea for election as its Board of Directors at the forthcoming annual meeting of shareholders of DavidsTea, which RDI expects will be held in June. Mr. Herschel Segal, co-founder of DavidsTea and President of RDI, will lead the slate of RDI nominees. If the slate is elected, it is expected that Mr. Segal will become Chairman of the Board of Directors of DavidsTea. RDI is a company controlled by Herschel Segal and is the largest shareholder of DavidsTea, holding approximately 46% of its issued and outstanding shares.
It is RDI’s opinion that DavidsTea should focus on turning around its financial performance. Specifically, RDI believes that DavidsTea should concentrate on the Canadian market and on continuing its efforts to stabilize operations in the United States. To that end, RDI will not proceed at this time with previously-announced plans to present a proposal for an offer to buy out DavidsTea’s minority shareholders. RDI also confirms its statement of February 20, 2018 to the Board of Directors of DavidsTea that RDI has no intention of selling its shares of DavidsTea at this time.
Herschel Segal stated “As I wrote to the Board of Directors of DavidsTea on March 5, I very much believe in the company and its future. In order to improve the current situation, a united Board of Directors is required, one which shares a common vision for the future of DavidsTea. Rainy Day Investments will present a slate of quality nominees, of which I will be a member, to the Corporate Governance Committee of the Board of Directors of DavidsTea. A majority of the slate will be independent of Rainy Day Investments.
“I have every confidence that the Corporate Governance Committee and Board of Directors of DavidsTea will endorse the slate, which will be prepared to take office at the annual meeting, if not sooner. I am convinced that with a new Board of Directors which shares a common vision for DavidsTea, we will be able to make substantial progress in improving the company’s performance, for the benefit of all shareholders. We intend to submit our slate of nominees to the Corporate Governance Committee within the next week to ten days,” Mr. Segal concluded.
For further information please contact:
Mr. Lorenzo Salvaggio
Vice-President and Chief Operating Officer
Rainy Day Investments Ltd.
Source:Rainy Day Investments Ltd.