Rainy Day Investments Asks: Where are DAVIDsTEA’s Q1 Results?

• Rainy Day Investments demands that DAVIDsTEA release its first quarter results
  
  
• It is essential that shareholders see Q1 results before voting for the annual meeting called for June 14
  
  
• Full transparency at DAVIDsTEA is critical at this time

MONTREAL, June 04, 2018 (GLOBE NEWSWIRE) -- Rainy Day Investments Ltd. (“RDI”) demands that DAVIDsTEA Inc. (“DAVIDsTEA”) (Nasdaq:DTEA) release its first quarter financial statements to ensure that shareholders can consider the financial results before voting their proxies by the June 12 deadline for the annual meeting to be held on June 14, 2018.

“It’s critical that DAVIDsTEA shareholders see the results for the first quarter now,” said Herschel Segal, co-founder of DAVIDsTEA and President of RDI, which holds approximately 46.4% of the outstanding shares of DAVIDsTEA and which has proposed a slate of seven highly-qualified Canadian nominees for election as directors at the annual meeting.  “DAVIDsTEA has made numerous claims about ‘executing on its plan’ and that it is ‘already seeing positive momentum’.  We certainly didn’t see any ‘positive momentum’ in the results for the last fiscal year.  Let’s see if they managed to produce ‘positive momentum’ in the first quarter this year,” added Mr. Segal.

The first quarter of DAVIDsTEA’s current fiscal year ended on Saturday, May 5.  In the past two years, DAVIDsTEA released its first quarter results 39 days after the end of the quarter.  If DAVIDsTEA does so again this year, it will release the Q1 results on June 13, only one day before the annual meeting and one day after the cut-off time for proxy voting, which is June 12.  RDI views this schedule as deficient corporate governance and contrary to the interests of DAVIDsTEA shareholders.

Mr. Segal concluded: “We are now 30 days after the end of the fiscal quarter.  RDI demands that DAVIDsTEA release its Q1 results now.  We need transparency at this critical time; it is inconceivable to RDI that DAVIDsTEA management and Board of Directors intend to release Q1 results after the deadline for proxy voting when there is a contested election for the Board.  As we have said, this election is perhaps the most important in DAVIDsTEA’s history.  It is essential that shareholders see the first quarter results before voting.  And if management’s ‘clear plan” is producing positive change and improved results, what is there to hide?”

How to Vote for the RDI Nominees

RDI has proposed seven highly-qualified Canadian nominees with extensive experience operating retail businesses in Canada.  They share a common vision about the future of DAVIDsTEA and are committed to a turnaround of operations and financial performance for the benefit of ALL shareholders.

RDI’s nominees are Herschel Segal, M. William Cleman, Pat De Marco, CPA, CA, Emilia Di Raddo, CPA, CA, Max Ludwig Fischer, Ph.D., Peter Robinson and Roland Walton.  RDI mailed a proxy circular dated May 11, 2018 to shareholders, including a BLUE voting instruction form, which allows shareholders to vote FOR the seven nominees.

To vote for RDI’s seven nominees, use only the BLUE voting instruction form.  If you have already voted using the yellow management proxy and wish to vote FOR RDI’s qualified nominees, please vote using the BLUE form.  This will automatically revoke any previous proxies submitted.  To ensure that your vote is counted, please vote even if you are planning to attend the annual meeting.  The deadline to vote your BLUE voting instruction form is at 9:00 a.m. (eastern time) on Tuesday, June 12, 2018.

Shareholders who need assistance in voting their BLUE voting instruction form in favour of the seven RDI nominees should contact RDI’s proxy solicitation agent, Shorecrest Group, by email at contact@shorecrestgroup.com or by calling toll free at 1-888-637-5789.  Brokers and banks can reach Shorecrest Group at 647-931-7454.  RDI’s proxy circular is available at www.saveDTEA.com as well as under DAVIDsTEA’s profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

Forward-looking Statements

This press release may contain forward-looking statements with respect to DAVIDsTEA and RDI.  These statements generally can be identified by use of forward-looking words such as “may” “will”, “expect”, “estimate”, “anticipate”, “intends” or “believe” or the negative thereof or similar variations.  Actual results could differ materially from those expressed or implied by such statements.  Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.  These cautionary statements qualify all forward-looking statements attributable to RDI and persons acting on its behalf.  Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and RDI has no obligation to update such statements, except to the extent required by applicable securities laws.