CHANGSHA, China, June 25, 2020 /PRNewswire/ -- Urban Tea,
Inc. ("Urban Tea" or the "Company")
(NASDAQ: MYT), a premier retailer of specialty teas and baked goods
headquartered in Hunan, China,
announced today that it has entered into a securities purchase
agreement with certain accredited investors to sell approximately
$5.0 million of its ordinary shares
in a registered direct offering.
Under the terms of the purchase agreement, Urban Tea has agreed to sell 9.0 million
ordinary shares at a price of $0.555
per share. The gross proceeds to Urban
Tea are estimated to be approximately $5.0 million before deducting the placement agent
fees and other estimated offering expenses. The registered direct
offering is expected to close on or about June 29, 2020, subject to the satisfaction of
customary closing conditions.
Maxim Group LLC acted as sole placement agent for the
offering.
The ordinary shares being sold pursuant to the registered direct
offering is being made pursuant to a shelf registration statement
on Form F-3 (File No. 333-227211), previously filed with the
Securities and Exchange Commission (the "SEC") on September 6, 2018 and declared effective on
September 19, 2018. Such
securities are being offered only by means of a prospectus. A
prospectus supplement and the accompanying prospectus relating to
and describing the terms of the registered direct offering will be
filed with the SEC. When available, copies of the prospectus
supplement and the accompanying prospectus relating to the
registered direct offering may be obtained at the SEC's website
www.sec.gov or by contacting Maxim Group LLC, 405 Lexington
Avenue, 2nd Floor, New York, NY
10174, at 212-895-3745.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such state or
jurisdiction.
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 Limited
which controls Hunan Ming Yun Tang Brand Management Co., Ltd. and
Hunan 39 Pu Tea Co., Ltd., the
Company currently markets a wide range of trendy tea drinks, light
meals, and pastries targeting the new urban generation in
China, and is currently in the
process of opening its first store in New
York City. The Company's products are focused on not only
their taste but also their aesthetic presentation and health
benefits. For more information, please visit:
http://ir.h-n-myt.com/investor.
Forward-Looking Statements Disclaimer
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 development of the COVID-19 virus and the impact
it will have on the Company's operations and the other 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.