The company is a "fast-growing" Canadian retailer of branded teas with sales of $142 million in 2014. It offers a wide variety of loose leaf teas and tea-related gifts, tea accessories, and in-store beverages primarily through its network of 161 retail stores in Canada, the firm stated.
Since the company's founding in 2008, it has also operated an e-commerce site, which accounts for 8% of the sales, analysts noted.
"We believe DAVIDs' modern in-store experience, innovative culture, attractive market positioning, and track record of strong new-store returns in Canada position the company well to achieve its growth target," analysts said.
In Tuesday's morning trading session, shares are falling 3.65% to $21.66.
This move comes after the company reported first quarter earnings on June 17, reporting a net loss of C$93.2 million, or C$7.74 per share versus a profit of C$1.4 million or 7 Canadian cents per share a year ago.
Despite the net loss, sales grew 29% to $35.8 million in the first quarter.