CHANGSHA, China, Nov. 17, 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 its wholly-owned subsidiary Hunan Ming Yun Tang Brand
Management Co., Ltd. ("Ming Yun
Tang") has entered into an acquisition agreement (the
"Agreement") to acquire 51% equity interests of two Chinese
entities : Chuangyeying Brand Management Co., Ltd. ("CYY") and
Store Master Food Trading Co., Ltd. ("Store Master").
CYY owns a franchise permit to operate franchise stores in
China and also holds multiple
registered trademarks in China. An
impressive 302 tea beverages franchisees fall under its management.
Store Master specializes in supply chain management, product
research and development, and optimizing long-term and stable
supply chains. Additionally, Store Master owns a scalable warehouse
with an advanced logistics management system and supplies raw
material to its managing franchisees.
Under the terms of the Agreement, Urban Tea will acquire 51% of CYY and Store
Master for cash contribution of approximately RMB 3.1 million (approximately $468,000). Ming Yun
Tang agreed to contribute additional cash based on CYY and
Store Master's achievement of certain revenue, net income and
number of new stores in the next three years. Both companies'
executive teams have years of extensive experience in supply chain
and franchise management. Their expertise will be a valuable asset
to Ming Yun Tang's domestic
business. Our collaborations will play a critical role by improving
the supply chain and product R&D, as well as driving rapid
growth of franchisee network and sales. CYY and Store Master will
receive additional rewards according to certain earn-out schedules
based on their business performance and other financial
indicators.
Urban Tea Chief Executive Officer
Mr. Yi Long commented, "The
acquisition is a major milestone for Urban
Tea. We now operate franchise stores in 28 different
provinces and municipalities, taking us to the next level in
competition and challenges. With a rebranded business strategy, we
are confident that the acquisition will help us grow our platform,
enhance our supply chain, and provide truly diversified products
and services to our clients. Meanwhile, we expect our
footprint in the overseas market will continue to grow. With
the combination of CYY's and Store Master's advanced supply chain
technology, their team's operational skills, and our integrated
resources, we believe we will achieve long-term growth by
attracting more franchisee opportunities and providing customers
with the best-in-store products and services. Most importantly,
this growth is expected to maximize our shareholders' value as
well."
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 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.