Jane Silverstone Segal, Chair of the Board of DAVIDsTEA, also subscribes for $1.5 million
Proceeds will be used to fund new store openings in Canada, extending DAVIDsTEA's signature in-store experience to more communities across the country
Company further enhances liquidity through $2.7 million non-dilutive, revenue-linked financing
MONTREAL, Nov. 12, 2025 (GLOBE NEWSWIRE) -- DAVIDsTEA Inc. (TSX-Venture: DTEA) ("DAVIDsTEA" or the "Company"), a leading North American tea merchant, is pleased to announce that it has received subscription agreements for a private placement of units in an aggregate amount of $3 million (the "Private Placement"). Proceeds from the Private Placement will be used to open new stores across Canada and to support working capital requirements.
The Company is also pleased to announce that it has entered into a revenue-linked financing agreement under which an institutional partner has provided $2.7 million to DAVIDsTEA. The proceeds from this non-dilutive financing have been added to working capital, providing the Company with further financial flexibility.
"This financing signals the next chapter in DAVIDsTEA's evolution from turnaround to growth. With a strengthened balance sheet and renewed momentum, we're ready to expand our retail footprint, deepen customer relationships, and advance the wellness-focused shift toward specialty tea. Our Grand Plan is simple yet powerful, to bring the DAVIDsTEA experience back to more communities across Canada, where our brand story, passionate tea guides, and immersive in-store experience truly come to life," said Sarah Segal, Chief Executive Officer and Chief Brand Officer, DAVIDsTEA.
"This combination of equity and revenue-linked financing strengthens our liquidity and financial flexibility," said Frank Zitella, President and Chief Operating and Financial Officer of DAVIDsTEA. "It provides the capital to accelerate the execution of our store-led growth strategy while maintaining a disciplined approach to capital allocation. The proceeds will support the opening of new stores, enhance working capital, and help position DAVIDsTEA to achieve sustainable profitability, generate meaningful free cash-flow and deliver long-term value for all shareholders."
In the Private Placement, DAVIDsTEA will issue 3,333,334 units at a price of $0.90 per unit, for proceeds of $3 million. Each unit will consist of one common share and one-half of a common share purchase warrant. Each full warrant will entitle its holder to purchase one additional common share of DAVIDsTEA at a price of $1.25 for one year from the closing date of the Private Placement and at a price of $1.50 for one year thereafter. In the event that at any time following the date that is four months and one day from the closing date of the Private Placement, the closing price of DAVIDsTEA's common shares on the TSX Venture Exchange is at least $2.00 for a period of not less than 20 consecutive trading days, the warrants will expire, at the sole discretion of the Company, on the 30th day after the date on which the Company sends a notice in ...
