CHANGSHA, China, July 15, 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 the Company has received two
notification letters from The NASDAQ Stock Market LLC
("Nasdaq") on July 9, 2019 and
July 10, 2019, notifying the Company
that it is not in compliance with the minimum Market Value of
Listed Securities ("MVLS") requirement and the Minimum Bid
Price ("Bid Price") requirement, respectively.
On July 9, 2019, Nasdaq sent the
Company a notification letter stating that the Company is not in
compliance with the MVLS requirement set forth in Nasdaq Listing
Rule 5550(b)(2) for continued listing on the Nasdaq Capital Market
(the "MVLS Deficiency"). Nasdaq Listing Rule 5550(b)
requires listed securities to maintain either stockholders' equity
of at least $2.5 million, a minimum
MVLS of $35 million or net
income from continuing operations of $500,000 in the most recently completed fiscal
year or in two of the three most recently completed fiscal years.
Nasdaq Listing Rule 5810(c)(3)(C) provides that a failure to meet a
minimum MVLS exists if the deficiency continues for a period of 30
consecutive business days. Based upon Nasdaq's review of the
Company's MVLS for the last 30 consecutive business days, the
Company no longer meets the minimum MVLS requirement.
The MVLS Deficiency letter does not impact the Company's listing
on the Nasdaq Capital Market at this time. In accordance with
Nasdaq Listing Rule 5810(c)(3)(C), the Company has been provided
180 calendar days, or until January 6, 2020 to regain compliance
with Nasdaq Listing Rule 5550(b)(2).
On July 10, 2019, Nasdaq sent the
Company a second notification letter stating that the minimum bid
price per share for the Company's ordinary shares has been below
$1.00 for a period of 30 consecutive
business days and the Company therefore no longer meets the Bid
Price requirements set forth in Nasdaq Listing Rule 5550(a)(2) (the
"Bid Price Deficiency").
The Bid Price Deficiency letter received has no immediate effect
on the listing of the Company's ordinary shares on Nasdaq. Under
the Nasdaq Listing Rules, the Company has until January 6, 2020 to regain compliance. If at any
time during such 180-day period the closing bid price of the
Company's ordinary shares is at least $1 for a minimum of 10 consecutive business days,
Nasdaq will provide the Company written confirmation of
compliance.
If the Company does not regain compliance by curing the Bid
Price Deficiency during such 180-day period, the Company may be
eligible for an additional 180 calendar days, provided that the
Company meets the continued listing requirement for market value of
publicly held shares and all other initial listing standards for
Nasdaq except for Nasdaq Listing Rule 5550(a)(2), and provide a
written notice of its intention to cure this deficiency during the
second compliance period, by effecting a reverse stock split, if
necessary.
The Company intends to promptly evaluate options available to
regain compliance. However, there can be no assurance that Company
will be able to regain compliance with the applicable Nasdaq
listing requirements.
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 forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements are subject to known and unknown risks,
uncertainties and other factors that may cause actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Statements preceded or followed by
or that otherwise include the words "believes," "expects,"
"anticipates," "intends," "projects," "estimates," "plans," and
similar expressions or future or conditional verbs such as "will",
"should", "would", "may" and "could" are generally forward-looking
in nature and not historical facts. Forward-looking statements in
this release also include statements about business and economic
trends. Investors should also consider the areas of risk described
under the heading "Forward Looking Statements" and those factors
captioned as "Risk Factors" in CIS's periodic reports under the
Securities Exchange Act of 1934, as amended, or in connection with
any forward-looking statements that may be made by CIS.
CONTACT INFORMATION
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.