CHANGSHA, China, Sept. 9, 2020 /PRNewswire/ -- Urban Tea Inc. (the
"Company," "we" or "Urban Tea")
(NASDAQ: MYT), a premier retailer of specialty teas and baked goods
headquartered in Hunan, China,
announced today that the Company has signed a non-binding Letter of
Intent ("LOI") to acquire 80% of the equity interest of Guokui
Management Inc. ("Guokui Management"), a company incorporated under
the laws of New York State. Guokui
Management's first restaurant, Crop Circle, is a casual
restaurant opened in August 2020,
located in Greenwich Village near
Washington Square Park, New York
City. The restaurant offers light Chinese meals and snacks
such as dumplings and rice noodle rolls, and features
its specialty—"guokui." Guokui is a flatbread baked in a clay
oven with various choices of flavorful fillings such as shrimp,
beef, pork, chicken, preserved vegetables and brown sugar, a
popular street snack originating from northern China's Shanxi province.
Pursuant to the terms of the LOI, the Company shall pay Guokui
Management $400,000 in cash in
consideration for 80% of the equity interest in Guokui Management.
In addition, following the consummation of the planned Acquisition,
the Company plans to open additional joint venture stores with the
shareholders of Guokui Management, and incentivize the current
shareholders of Guokui Management by issuing a certain number of
the Company's restricted shares based on future operation and
expansion milestones.
"The restaurant and food retail industry in America is large and
quickly adapting to the new norm. We continue to see tremendous
potential in overseas markets after the successful grand opening of
our first tea house, Meno," said Mr. Long Yi, CEO of Urban
Tea. "This planned acquisition would be another major step
forward in establishing our footprint in the U.S. as we are
pivoting our efforts to tap into the casual take-out dining
market. We believe that our operational knowledge and
experience will synergize well with the strengths of Guokui
Management's brand and management team here in the U.S. We are
optimistic about opening additional restaurants to grow our market
share and are committed to creating strategic overseas expansion
plans. Our mission is to become a reputable multicultural chain
enterprise with a portfolio of brands."
Completion of the acquisition is subject to due diligence
investigations by the relevant parties, the negotiation and
execution of a definitive share purchase agreement, satisfaction of
the conditions negotiated therein, the approval of the Company's
Board of Directors and the satisfaction of other customary closing
conditions. There can be no assurance that a definitive agreement
will be entered into or that the proposed transaction will be
consummated. Further, readers are cautioned that those portions of
the LOI that describe the proposed transaction, including the
consideration to be issued therein, are non-binding.
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 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. 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, local
government'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.