Urban Tea Announces Clarification of Effectiveness Date for 1 for 10 Reverse Share Split
Urban Tea Inc. (NASDAQ: MYT) has issued a clarification regarding its previously announced 1 for 10 reverse stock split. The reverse split will now be effective on August 27, 2020, instead of the previously stated date. Shareholders will receive one new ordinary share for every ten shares they hold, starting on a split-adjusted basis from market opening.
Urban Tea, based in Changsha, China, specializes in retailing trendy tea products and baked goods, aimed at the new urban generation.
- Clarification of the effective date for the reverse split provides certainty for shareholders.
- The reverse split may help the stock maintain compliance with NASDAQ listing requirements.
- Reverse splits can indicate underlying financial struggles, potentially leading to reduced investor confidence.
CHANGSHA, China, Aug. 26, 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, is issuing this press release to clarify its press release dated August 25, 2020. On August 25, 2020, the Company had announced that a 1 for 10 reverse split of its ordinary shares (the "Reverse Split") is expected to become effective on or around August 26, 2020. The Company would like to clarify that the Reverse Split is expected to become effective on August 27, 2020.
As previously announced, upon the effectiveness of the Reverse 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 27, 2020.
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.
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