CHANGSHA, China, Aug. 25, 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 a 1 for 10 reverse split of its ordinary shares was
approved by the Company's board of directors on August 19, 2020 and is expected to become
effective on or around August 26,
2020.
Upon the effectiveness of the reverse share split, Urban Tea shareholders will receive one new
ordinary share of Urban Tea for
every ten shares they hold. Urban
Tea's ordinary shares is expected to begin trading on a
split-adjusted basis when the market opens on August 26, 2020.
The reverse share split is expected to lead Urban Tea's ordinary shares to trade at
approximately ten times the price per share at which it trades
prior to the effectiveness of the reverse share split. Urban Tea, however, cannot assure that the price
of its ordinary shares after the reverse split will reflect the 1
for 10 reverse split ratio, that the price per share following the
effective time of the reverse split will be maintained for any
period of time, or that the price will remain above the pre-split
trading price.
There will be no changes to Urban
Tea's Amended and Restated Articles and Memorandum of
Association in connection with the reverse share split. As of
August 25, 2020, there were
approximately 79,438,648 of Urban
Tea's ordinary shares outstanding. Effecting the 1 for 10
reverse split will reduce that amount to approximately 7,944,211.
The reverse split will not change the number of Urban Tea's authorized preferred shares, which
will remain at 5,000,000 shares.
Treatment of Stock Options and Restricted
Shares
The number of ordinary shares into which Urban Tea's outstanding stock options and
restricted shares as well as the options' relevant exercise price
per share will be proportionally adjusted to reflect the reverse
split. The number of shares authorized for issuance under
Urban Tea's equity incentive plans
will also be proportionally reduced to reflect the reverse
split.
Fractional Shares
Any fractional shares that would have resulted because of the
Reverse Split will be rounded up to the nearest whole share.
New Ordinary Share Certificates
Urban Tea will adopt a new share
certificate in connection with the implementation of the reverse
share split. Urban Tea's transfer
agent, VStock Transfer LLC, will manage the exchange of share
certificates. Shareholders of record will receive a letter of
transmittal providing instructions for the exchange of their old
certificates as soon as practicable following the effectiveness of
the reverse split. Shareholders should not send in their old stock
certificates until they receive a letter of transmittal from VStock
Transfer LLC. Shareholders who hold their shares through a
securities broker or nominee (i.e., in "street name") will be
contacted by their brokers or nominees with any instructions.
For more information, shareholders and securities brokers should
contact VStock Transfer LLC at 212-828-8436.
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 the new urban generation. 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 uncertainty about the spread of the COVID-19
virus and the impact it will have on the Company's operations, the
demand for the Company's products, supply chains, New York City's regulation of restaurants, and
economic activity in general. These and other risks and
uncertainties are detailed in 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.