DAVIDsTEA secures $5.7 million in financing for Canadian expansion

DAVIDsTEA Inc. (TSX-Venture: DTEA) announced it has secured $3 million through a private placement and $2.7 million in revenue-linked financing to fund new store openings in Canada.

The private placement involves issuing 3,333,334 units at $0.90 per unit. Each unit consists of one common share and one-half warrant, with full warrants allowing holders to purchase additional shares at $1.25 for the first year and $1.50 for the second year following closing.

Pembroke Heritage Fund Limited, Pembroke Genesis Pooled Fund and a related party subscribed for $1.5 million of the placement. Jane Silverstone Segal, chair of DAVIDsTEA's board, subscribed for the remaining $1.5 million.

The Montreal-based tea retailer also secured $2.7 million in non-dilutive, revenue-linked financing from an institutional partner. Combined proceeds will support new store openings across Canada and working capital requirements.

Following the private placement completion, DAVIDsTEA expects to have 30,478,923 shares outstanding, compared to the current 27,145,589 shares. Jane Silverstone Segal's ownership will increase from 44.76% to 45.33% of outstanding shares.

The company operates through its e-commerce platform, wholesale customers including over 4,000 grocery stores and pharmacies, and 20 company-owned stores across Canada. The private placement requires TSX Venture Exchange approval and is expected to close by November 21, 2025.

The transaction constitutes a related party transaction under Canadian securities regulations due to Segal's participation. DAVIDsTEA's three independent directors unanimously approved the placement.

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