Core Insights - DAVIDsTEA Inc. reported a focus on achieving profitable quarters while aligning marketing initiatives with the holiday season and the stronger fourth quarter, indicating a commitment to disciplined execution and growth strategies [3][22] - The company experienced a 2.9% increase in brick-and-mortar and comparable store sales for the quarter, building on an 18.1% increase from the previous year, highlighting the strength of physical retail [3][6] - Despite challenges in online and wholesale channels due to economic conditions and U.S. tariffs, early retail trends for the fourth quarter appear encouraging [3][22] Financial Performance - Total sales for the third quarter reached $12.6 million, a decrease of $1.4 million or 10.2% from the prior year, with Canadian sales accounting for 88.5% of total revenue [4][5] - U.S. sales fell to $1.5 million, down 28.3% from the previous year, while Canadian sales decreased by 7.1% [4][7] - Gross profit was $5.9 million, down 17.9% from $7.2 million in the prior year, with gross profit as a percentage of sales decreasing to 47.0% from 51.5% [8][24] Cost Management - Selling, general and administrative (SG&A) expenses decreased by 26.5% to $6.4 million, attributed to a lower operating cost base and reduced IT-related expenses [9][10] - The company recorded a net loss of $0.6 million, an improvement from a net loss of $1.6 million in the prior year [11][12] Liquidity and Capital Resources - As of November 1, 2025, the company had $8.1 million in cash and working capital of $10.7 million, down from $12.8 million earlier in the year [14][15] - The company completed a $2.7 million revenue-linked financing and a $3.0 million private placement to strengthen liquidity [5][20] Growth Strategy - DAVIDsTEA aims to double its retail footprint in Canada, with plans to open up to six new stores in fiscal 2026 [3][5] - The company opened a new store at Laurier Québec Mall in December and has additional locations under contract and letters of intent [5][6]

Core Viewpoint - DAVIDsTEA Inc. has successfully closed a private placement of units amounting to $3 million, aimed at expanding its store presence in Canada and supporting working capital needs [1][2]. Group 1: Private Placement Details - The private placement involved the issuance of 3,333,334 units at a price of $0.90 per unit, generating total proceeds of $3 million [2]. - Each unit consists of one common share and one-half of a common share purchase warrant, with full warrants allowing the purchase of additional shares at $1.25 for one year and $1.50 for the subsequent year [2]. - The warrants may expire if the closing price of DAVIDsTEA's shares reaches at least $2.00 for 20 consecutive trading days, with a notice period of 30 days for warrant holders [2]. Group 2: Company Overview - DAVIDsTEA is a leading North American tea merchant, offering a variety of high-quality proprietary loose-leaf teas, pre-packaged teas, and tea-related accessories through its e-commerce platform and wholesale channels [5]. - The company serves over 4,000 grocery stores and pharmacies, 1,500 convenience stores in Canada, and 900 grocery stores in the United States, alongside operating 20 company-owned stores in Canada [5]. - DAVIDsTEA focuses on innovative flavors and wellness-driven ingredients, launching seasonal collections to make tea enjoyable and accessible [5].

Core Viewpoint - A new individual business named "Yian Yuye Tea Industry Store" has been established in Guandu District, with a registered capital of 50,000 RMB, focusing on various retail and sales activities related to food and agricultural products [1] Group 1: Business Overview - The legal representative of the newly established tea industry store is Yang Yaocheng [1] - The registered capital of the business is 50,000 RMB [1] - The business scope includes retail of edible agricultural products, internet sales of pre-packaged food, and sales of various goods such as fresh fruits, daily necessities, and health food [1] Group 2: Operational Scope - The store is permitted to engage in food sales, subject to approval from relevant authorities [1] - The business can operate independently based on its business license, without needing further approval for general projects [1] - Specific sales activities include bamboo products, electronic products, and various types of ceramics [1]