CHANGSHA, China,
June 8, 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, today announced that we received the approval from
the Commercial Franchise Enterprise Administration on May 20th, 2020 and was approved
to seek franchisees for growth opportunities throughout
China. Hunan Ming Yun Tang Brand
Management Co., Ltd. ("Hunan MYT"), the Company's variable interest
entity, has officially obtained the "Business Franchise Enterprise"
license issued by the Hunan Provincial Department of Commerce. The
license enables the Company to grow its business through
franchising with its brand "Buoyance Manor," in addition to
operating corporate stores within China.
Management believes that due to Hunan MYT's efficient brand
operation, management and supply chain system, coupled with newly
obtained franchise qualifications, we are well positioned to
attract potential franchisees across the country. The
Buoyance Manor franchising opportunity represents an exceptional
opportunity in the tea retailer industry. In addition to providing
franchisees with brand publicity, store design, staff training, and
standard administration services, the centralized kitchen will also
provide finished products to franchisees. Given the extensive
collaboration with major raw material and equipment suppliers,
franchisees will always be offered supplies of the best quality at
a competitive price.
Mr. Long Yi, Chief Executive
Officer of Urban Tea, commented: "We
are excited about expanding our brand and growing the business via
franchising. This is a strong indicator that the Company has
ushered in a new development opportunity. There is tremendous
growth potential for franchise businesses, and the strength of
our brand and management; we look forward to achieving long-term,
successful partnerships with our franchisees."
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: 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.