DAVIDsTEA (NASDAQ:DTEA) told investors it has been accepted for listing on the TSX Venture Exchange (TSX-V) and that its common shares will commence trading on the Canadian exchange on Monday, April 3, 2023, in Canadian dollars and under the 'DTEA’ ticker symbol.
As a result of its listing on the TSX-V, the company said it intends to voluntarily delist its common shares from the Nasdaq and file a Form 25 with the US Securities and Exchange Commission (SEC) on or about April 7, 2023, with trading on the Nasdaq expected to cease at the close of markets on Friday, April 14, 2023.
DAVIDsTEA (NASDAQ:DTEA), a leading tea merchant in North America, said the decision to relocate its listing was partly due to its failing to meet the Nasdaq's mininum price bid requirement towards the end of last year, when its shares traded below the minimum US$1 required for a continued listing on the US exchange.
As a result, after careful consideration, its board of directors determined that it is in the best interests of the company to delist the common shares from Nasdaq and to list on a stock exchange in Canada.
The decision was based on several factors, including an analysis of the benefits of continued Nasdaq listing weighed against the significant costs, regulatory burden and management time commitment for compliance and reporting activities associated with a Nasdaq listing, and the board’s assessment of the probability of it regaining compliance with Nasdaq’s continued listing requirements, the company said.
Canadian listing makes sense
“Listing on a Canadian stock exchange makes sense for DAVIDsTEA (NASDAQ:DTEA),” the company’s president, chief operating and financial officer Frank Zitella said in a statement. “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 US investors will be able to trade DAVIDsTEA through the facilities of the TSX Venture Exchange,” he added.
The company said shareholders will not be required to exchange their share certificates or take any other action in connection with the TSX-V listing as there will be no change in the trading symbol or CUSIP number for its shares.
It also confirmed that its strategy, operations and ability to grow its business will not change as a result of the transfer of its stock exchange listing to the TSX-V.
Contact the author at stephen.gunnion@proactiveinvestors.com