DavidsTea board to scrutinize co-founder's slate of director nominees - 660 NEWS
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DavidsTea board to scrutinize co-founder's slate of director nominees

Last Updated Mar 22, 2018 at 9:20 am MDT

MONTREAL – The chair of DavidsTea’s current board says it’s carefully reviewing a slate of director nominees submitted by a 46 per cent shareholder that has indicated an interest in taking the chain of tea shops private.

DavidsTea chairman Maurice Tousson — who isn’t one of the shareholder’s nominees — says in a statement that the current directors are committed to ensuring all shareholders are fairly represented on the board.

Rainy Day Investments Ltd. is controlled by co-founder Herschel Segal, who indicated in February that RDI is exploring the possibility of taking the company private. Segal resigned from the board effective March 5.

Rainy Day announced Monday that it’s nominating Segal as one of eight proposed directors. The other nominees include Lorenzo Salvaggio, another former director of DavidsTea, and Emilia Di Raddo who remains on the current board.

The company’s statement on Thursday said the board hasn’t received a formal proposal from Rainy Day Investments and Tousson said the board is working to ensure the management team of DavidsTea stays focused on improving operations.

DavidsTea has only been publicly traded since June 2015, when it listed on the Nasdaq stock market as part of an expansion plan. It currently has 236 tea shops across Canada and the United States.

Companies in this story: (Nasdaq:DTEA)