CHANGSHA, China,
Nov. 7, 2019
/PRNewswire/ -- Urban Tea Inc. (the "Company", "we" or
"Urban Tea") (NASDAQ: MYT), a
premier retailer of specialty teas and baked goods based in
Hunan, China, announced today that
it has completed the acquisition of 51% equity interest in
Hunan 39 Pu Tea Co., Ltd. ("39 Pu
Tea"), a limited liability company organized under the laws of the
PRC, and has entered into a set of variable interest entity
agreements with 39 Pu Tea through Mingyuntang (Shanghai) Tea Co. Ltd., the Company's wholly
foreign owned subsidiary organized under the laws of PRC.
Founded in April 2011 and
headquartered in Hunan, China, 39
Pu Tea is engaged in product research and development, tea
production, distribution, and tea cultural heritage projects. Its
primary business covers the sale of loose-leaf teas and tea sets,
management of tea culture clubs, holding tea ceremony trainings,
and other tea-related product development. 39 Pu Tea's current
major sales channels are through wholesale, retail, franchises,
e-commerce marketplaces, and other storefronts.
Mr. Long Yi, Chief Executive
Officer of Urban Tea commented,
"The acquisition of 39 Pu Tea is an
important strategic step of expanding our tea business operations
and diversifying our sales channels; it will also help provide the
consistent supplies of tea for our corporate brand stores of 'Your
Ladyship Tea' and 'Buoyance Manor'. Upon the completion of the
acquisition, the Company will be able to consolidate 39 Pu Tea's
financial statements, resulting in an increase to the Company's
assets and operating income. The acquisition will also improve and
support the Company's existing business line of milk tea and bakery
products, the brand's marketing, personnel training, and store
operation. By centralizing the kitchen production management,
warehousing and distribution system, the Company expects to have a
solid foundation to establish an enhanced overall production chain
for rapid future growth."
Mr. De'an Hu, CEO of 39 Pu Tea,
said, "It is a great honor for 39
Pu Tea to be a part of the public company, Urban Tea. The completion of this acquisition
will strengthen our brand recognition and our ability to drive
growth together with Urban Tea. As
39 Pu Tea's management, we are confident in Urban Tea's strategic planning and will support
our business partner with continuous contributions."
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,
Mingyuntang (Shanghai) Tea Co. Ltd
("Shanghai MYT") which controls Hunan Mingyuntang Brand Management
Company ("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:
http://ir.h-n-myt.com/investor.
Forward-Looking Statements
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.
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SOURCE Urban Tea Inc.