Urban Tea (NASDAQ:MYT)
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6 Months : From May 2019 to Nov 2019
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.
For more information, please contact investor relations:
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SOURCE Urban Tea Inc.