Thank you for giving us the opportunity to respond to the product recall announced on May 5, 2017 by Health Canada. Ardene takes matters of consumer safety very seriously. Over the past year, we have introduced a variety of new measures that govern both the procurement and testing of the jewellery sold in our stores. This has included implementing a mandatory third-party testing program for all of our children’s jewellery, and various items in our adult jewellery line. Since the implementation of this new testing program, all results have revealed that all of our children’s jewellery sold to consumers is well within our upgraded quality standards and all applicable product safety guidelines. The Ardene item affected by the May 5 Health Canada recall – the ‘Best Friend’ necklace featuring watermelon and cactus decals - was subject to these product testing procedures. Ardene can confirm that, in November 2016, a random sample of this necklace was tested by an internationally accredited independent laboratory before it was shipped to stores. The results of these tests showed that all of the components of this product were well below the limits set by Health Canada and that the sample was found to be compliant with the relevant product safety guidelines. During a routine inspection, a sample of the product and the test results were provided to the Health Canada inspector. Health Canada tested the product and informed us that its sampling and evaluation program had determined that a component of the necklace contained lead in excess of allowable limits. Ardene then immediately had separate samples of the component retested by the independent laboratory at two different locations – one located in the United States, and one located in China - and both of those tests verified that the product was in fact well below Health Canada’s limits. Because we were not involved in the tests performed by Health Canada, we cannot provide any further insight on their results. Regardless of the fact that our tests on 3 separate samples of the product by an independent laboratory has demonstrated that the product does not contain lead in excess of the allowable limits, Ardene is complying with the voluntary Health Canada recall. While we are satisfied that all necessary measures were taken to validate that this product meets the industry’s rigorous quality and safety standards, we are working closely with Health Canada to carry out their request, as part of our ongoing commitment to both our customers and the industry. Thank you, Arden Holdings Inc.