CHANGSHA, China, Sept. 23, 2020 /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 entered into a share purchase agreement (the
"Agreement"), pursuant to which the Company agreed to pay
$400,000 in cash to acquire 80% of
the equity interest in Guokui Management Inc. ("Guokui"). Guokui is
incorporated under the laws of New York
State and has been operating CROP CIRCLE, a casual street
food restaurant in New York City,
since August 2020. The Agreement also
includes details of how the two parties may collaborate in the
future.
Upon closing of the transaction contemplated by the Agreement,
MYT will own the registered trademark of "CROP CIRCLE" in
the United States and operate the
Crop Circle restaurant, which features guokui, an oval shaped baked
flatbread with various filling selections, a popular street snack
originating from northern China's
Shaanxi Province. CROP CIRCLE also
provides other meals combining classic and modern styles. MYT
currently owns the trademark "MENO" and operates MENO, a modern tea
and coffee shop with a small curated food menu. The ownership of
these two restaurants marks the implementation of MYT's initial
brand strategy in the United
States. Going forward, the Company plans to deepen its roots
in the US market based on the restaurants' operating
performances.
Ms. Kan Lu, CFO of Urban Tea,
commented: "The signing of the Agreement enables the Company to
better navigate the casual food and drink market in NYC. Through
building brand awareness and launching new restaurants, the
partnership with Guokui shareholders will take our expansion plan
on an exciting journey. We remain committed to our common core
values of providing culturally inspired food that is loved by
customers in America. With Guokui's management team, we look
forward to opening more restaurants and bringing traditional
Chinese cuisine to more guests across the U.S."
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 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. 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 uncertainty about the spread of the COVID-19
virus and the impact it will have on the Company's operations, the
demand for the Company's products, supply chains, local
government's regulation of restaurants, and economic activity in
general. These and other risks and uncertainties are detailed in
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.
