Transactions with related parties are measured
at the exchange amount, being the consideration established and agreed to by the related parties.
During the three and nine-month periods ended
November 2, 2019, the Company purchased merchandise for resale amounting to $33 and $48, respectively [November 3, 2018 - $125
and $222, respectively], and provided infrastructure and administrative services of $163 and $222, respectively [November 3, 2018
- nil and nil, respectively] from and to a company controlled by one of its executive employees, respectively.
During the three and nine-month periods ended
November 2, 2019, the Company purchased a perpetual license rights to a reporting data model and associated intellectual property
for nil and $200 [November 3, 2018 – nil and nil] and spent $96 and $164 [November 3, 2018 – nil] for consulting services
from a related party of the principal shareholder.
Loan to a Company controlled by one of the
Company’s executive employees
During the second quarter of 2019, the Company
entered into a secured loan agreement with Oink Oink Candy Inc., doing business as “Squish”, as borrower, and Rainy
Day Investments Ltd. (“RDI”), as guarantor pursuant to which the Company agreed to lend to Squish an amount of up to
$4 million, amended on September 13, 2019 to reflect a maximum amount available under the facility of $2.0 million and a repayment
date no later than December 31, 2019. As of November 2, 2019, $2.0 million was outstanding under the agreement. The loan bears
interest, payable monthly, at a rate of 1% over Bank of Montreal’s prime rate, which currently stands at 3.95%. RDI has guaranteed
all of Squish’s obligations to the Company and, as security in full for the guarantee, has given a movable hypothec (or lien)
in favour of the Company on its shares of DAVIDsTEA. Squish is a company controlled by Sarah Segal, an officer of DAVIDsTEA. RDI,
the principal shareholder of DAVIDsTEA, is controlled by Herschel Segal, Executive Chairman, Interim Chief Executive Officer and
a director of DAVIDsTEA. The Company and Squish previously entered into a Collaboration and Shared Services Agreement pursuant
to which they collaborate on and share various services and infrastructure.
For the period
ended November 2, 2019, the Company received $36 [November 3, 2018 – nil] as interest on the secured loan.
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