MONTREAL, March 23, 2018 (GLOBE NEWSWIRE) -- 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 Salvaggio
Vice-President and Chief Operating Officer
Rainy Day Investments Ltd.
Source:Rainy Day Investments Ltd.