He told the Las Cruces Sun-News Monday the pair became academic casualties after the spring semester, and have been informed they will lose their scholarships.
"This isn't a basketball issue right now. It's a life issue," Theus told the paper. "If I have anything to do with it, they will be here getting their education in the fall."
Mitchell, a junior from San Antonio, was the Aggies' second-leading scorer last season. He started 29 of 30 games and averaged 14.1 points.
Davis, a sophomore from Detroit, averaged 6.2 points in 30 games.
The paper reported that Theus has signed eight recruits for next winter.