NEW YORK, May 31, 2019 /PRNewswire/ -- Urban Tea, Inc. (the "Company") (NASDAQ: MYT), a
premier retailer of specialty teas and baked goods in China, announced today the closing of its
previously announced registered direct offering on May 29,
2019 to certain institutional investors of 2,845,000
ordinary shares and warrants to purchase up to 1,809,420 ordinary
shares, at a purchase price of
$1.62 for one ordinary share and a
corresponding warrant, for proceeds of approximately
$4.6 million. The warrants will be exercisable immediately
following the date of issuance for a period of five years at an
exercise price of $1.86 per
share.
After deducting the placement agent's commission and other
offering expenses payable by the Company, the net proceeds to the
Company were approximately $4.1
million. The Company intends to use the net proceeds of the
offering for general corporate purposes and working capital.
The securities described above were being offered by the Company
pursuant to a "shelf" registration statement on Form F-3
(Registration No. 333-227211), including a base prospectus,
previously filed with and declared effective by the Securities and
Exchange Commission (SEC) on September 19,
2018. A prospectus supplement and an accompanying base
prospectus relating to the offering were filed with the SEC on
May 28, 2019 and are available on the
SEC's website located at http://www.sec.gov. Electronic copies of
the prospectus supplement and accompanying base prospectus may also
be obtained from FT Global Capital, Inc., 5 Concourse Parkway,
Suite 3000, Atlanta, GA 30328, at
770-350-2698.
FT Global Capital, Inc. acted as the exclusive placement agent
for this offering.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
jurisdiction. Any offering will be made only by means of a
prospectus, including a prospectus supplement, forming a part of
the effective registration statement.
About Urban Tea, Inc.
Urban Tea, Inc. is an emerging
specialty tea product distributer and retailer headquartered in
Changsha City, Hunan Province, China. Through its wholly owned subsidiary,
Shanghai Ming Yun Tang Tea Limited ("Shanghai MYT") which controls
Hunan Ming Yun Tang Brand Management Co., Ltd. ("Hunan MYT"), the
Company currently market a wide range of trendy tea drinks, light
meals, and pastries targeting China's new urban generation in Hunan province. Our products are focused on
not only their taste but also their aesthetic presentation and
health benefits. Our products are currently being offered via our
own stores. We expect to start selling our products in our managed
and JV stores in mid-2019. For more information, please visit:
ir.h-n-myt.com.
Safe Harbor Statement
This press release contains certain statements that may
include "forward-looking statements." All statements other than
statements of historical fact included herein are "forward-looking
statements." These forward-looking statements are often identified
by the use of forward-looking terminology such as "believes,"
"expects" or similar expressions, involving known and unknown risks
and uncertainties. Although the Company believes that the
expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. You should not
place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company's
actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including the risk factors discussed in the Company's
periodic reports that are filed with the Securities and Exchange
Commission and available on the SEC's website
(http://www.sec.gov). All forward-looking statements
attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these risk factors. Other
than as required under the applicable securities laws, the Company
does not assume a duty to update these forward-looking
statements.
For more information, please contact investor
relations:
Tina Xiao
Ascent Investor Relations LLC
Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com
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SOURCE Urban Tea Inc.