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Sep 21, 2018

DavidsTea unsure why shares soared, dropped on Friday

DavidsTea

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MONTREAL -- DavidsTea Inc. says it is unaware of any reasons why its shares soared nearly 60 per cent today before plummeting.

Its shares reached an intra-day high of US$5.35, up US$2.00 or nearly 60 per cent from Thursday's closing price of US$3.35 on the Nasdaq.

They then tumbled to close at US$2.50, down US$0.85 or about 25.4 per cent.

The Montreal-based company said that it was "not aware of any corporate development or other reason for the recent market activity."

Trading volume was more than 14.4 million, while it had failed to crack two million for the previous 30 trading days, typically sitting below the 100,000 mark.

DavidsTea recently reported a $10 million net loss in the first results since founder Herschel Segal took back control of the company's board.