Source: DAVIDsTEA Inc.
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  • DAVIDsTEA Inc. (DTEA) stock has been accepted for listing on the TSX Venture Exchange
  • Its common shares will begin trading on the TSX Venture on Monday, April 3rd in Canadian dollars under the ticker symbol DTEA
  • Shares are expected to trade on both the TSX Venture and NASDAQ from April 3rd to Friday, April 14th and will cease trading on the NASDAQ, from a voluntary delisting, at the close of markets on April 14th
  • DAVIDsTEA Inc. (DTEA) stock opened at $0.50 per share

DAVIDsTEA Inc. (DTEA) stock has been accepted for listing on the TSX Venture Exchange.

Its common shares will begin trading on the TSX Venture on Monday, April 3rd in Canadian dollars under the ticker symbol DTEA.

Shares are expected to trade on both the TSX Venture and NASDAQ from April 3rd to Friday, April 14th and will cease trading on the NASDAQ, from a voluntary delisting, at the close of markets on April 14th.

The company’s President and Chief Operating and Financial Officer, Frank Zitella said in a news release that listing on a Canadian stock exchange makes sense for DAVIDsTEA.

“We have significant brand awareness in Canada, all of our retail stores are in Canada and a majority of our revenues are generated in Canada. Additionally, a TSX Venture Exchange listing creates opportunities to reduce administrative and compliance costs without compromising investor confidence. Our shareholders in the United States and other U.S. investors will be able to trade DAVIDsTEA through the facilities of the TSX Venture Exchange.”

The media release added that this decision was based on several factors, including weighing the benefits of a continued NASDAQ listing against the significant costs, regulatory burden, and management time commitment for compliance and reporting activities associated with it. This, coupled with the board’s assessment of the probability the company regaining compliance with NASDAQ’S continued listing requirements. The company stated that its strategy, operations and ability to grow its business would not change as a result of the transfer of its stock exchange listing to the TSX Venture.

The Montréal-based North American tea merchant said no action is required from shareholders to exchange their share certificates or take other actions in connection with the TSX Venture listing, as there will not be a change in the trading symbol or Committee on Uniform Securities Identification Procedures (CUSIP) for the shares.

DAVIDsTEA operates in Canada’s packaged foods market as a branded retailer of different types of tea. The company primarily serves through DAVIDsTEA stores and its website, davidstea.com. Its business involves the sale of three main products; Tea, tea accessories and food and beverages. tea products such as loose-leaf teas, pre-packaged teas, and tea sachets account for most the company’s sales.

DAVIDsTEA stock chart – March 2022 to March 2023.

The company’s stock has seen a 24 per cent decline since the year began and is down more than 79 per cent since this time, last year.

The stock was halted at 81 cents a share in NASDAQ in premarket trading on Monday and took a hard 30 per cent plunge following this news.

DAVIDsTEA Inc. (DTEA) stock opened at $0.50 per share.

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