NEW YORK, May 24, 2019 /PRNewswire/ -- Urban Tea, Inc. (the "Company") (NASDAQ: MYT), a
premier retailer of specialty teas and baked goods in China, announced today it has entered into a
securities purchase agreement with certain institutional investors
to purchase approximately $4.6
million worth of its ordinary shares and warrants to
purchase ordinary shares in a registered direct offering.
Under the terms of the securities purchase agreement, the
Company has agreed to sell 2,845,000 ordinary shares and to issue
warrants to purchase up to 1,809,420 ordinary shares. 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. The purchase price for one
ordinary share and a corresponding warrant will be $1.62. The gross proceeds to the Company from the
registered direct offering are estimated to be approximately
$4.6 million before deducting the
placement agent's fees and other estimated offering expenses. The
registered direct offering is expected to close on or about
May 29, 2019, subject to the
satisfaction of customary closing conditions.
FT Global Capital, Inc. acted as sole placement agent for the
offering.
The 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. The securities
are being offered only by means of a prospectus supplement pursuant
to the Company's effective shelf registration statement and base
prospectus contained therein. A prospectus supplement and the
accompanying prospectus relating to and describing the terms of the
registered direct offering will be filed with the SEC.
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,
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.