An anonymous director reports

DAVIDSTEA CLOSES $3.0 MILLION PRIVATE PLACEMENT

Davidstea Inc. has closed its previously announced private placement of units in an aggregate amount of $3-million. Proceeds from the private placement will be used to open new stores across Canada and to support working capital requirements.

In the private placement, Davidstea issued 3,333,334 units at a price of 90 cents per unit, for proceeds of $3-million. Each unit consists of one common share and one-half of a common share purchase warrant. Each full warrant entitles its holder to purchase one additional common share of Davidstea at a price of $1.25 for one year from the closing date of the private placement and at a price of $1.50 for one year thereafter. In the event that at any time following the date that is four months and one day from the closing date of the private placement, the closing price of Davidstea's common shares on the TSX Venture Exchange is at least $2 for a period of not less than 20 consecutive trading days, the warrants will expire, at the sole discretion of the company, on the 30th day after the date on which the company sends a notice in prescribed form to the holders of the warrants. Davidstea did not pay any commissions or other fees in connection with the private placement. The shares and warrants issued in the private placement are subject to restrictions on resale for a period of four months ending March 20, 2026.

About Davidstea Inc.

Davidstea offers a specialty branded selection of high-quality proprietary loose-leaf teas, prepackaged teas, tea sachets, tea-related accessories and gifts through its e-commerce platform and the Amazon Marketplace, its wholesale customers, which include over 4,000 grocery stores and pharmacies, over 1,500 convenience stores in Canada, and over 900 grocery stores in the United States, as well as 20 company-owned stores across Canada. It offers primarily proprietary tea blends that are exclusive to the company, as well as traditional single-origin teas and herbs. The team's passion for and knowledge of tea permeates the company's culture, and is rooted in an excitement to explore the taste, health and lifestyle elements of tea. With a focus on innovative flavours, wellness-driven ingredients and organic tea, the company launches seasonally driven collections with a mission of making tea fun and accessible to all. The company is headquartered in Montreal, Canada.