DAVIDsTEA, a tea merchant in North America, entered into an agreement with the Bank of Nova Scotia for a revolving line of credit in an amount of CAD $15 million ($11.4 million).
“We are very pleased to enter into this agreement with the Bank of Nova Scotia as it provides DAVIDsTEA with the financial flexibility to accelerate its omnichannel growth strategy,” Frank Zitella, president, chief financial and operating officer of DAVIDsTEA, siad. “We appreciate Scotiabank’s confidence in our business plan as we continue making the right strategic investments to accelerate demand for our market-leading products.”
The line of credit is secured by a first-ranking security in favour of the bank. In addition, Investissement Québec has provided a loan loss guarantee under its “Loan Loss Program,” securing 50% of any loss incurred by the bank with respect to recovery of indebtedness under the line of credit.