Urban Tea, Inc. Announces Pricing of $6.0 Million Ordinary Share Registered Direct Offering
Urban Tea, Inc. (NASDAQ: MYT) announced a registered direct offering to sell approximately $6.0 million of ordinary shares at $0.32 per share, totaling about 18.8 million shares. The offering is expected to close on August 18, 2020, pending customary conditions. Proceeds will support Urban Tea's operations, including its expansion into international markets like New York City. Maxim Group LLC is the placement agent for the offering. This offering was filed under a previously effective shelf registration statement with the SEC on September 19, 2018.
- The offering is expected to raise $6.0 million for business operations and expansion.
- Urban Tea is targeting international market growth, having opened a store in New York City.
- Issuing approximately 18.8 million shares may dilute existing shareholders' equity.
CHANGSHA, China, Aug. 14, 2020 /PRNewswire/ -- Urban Tea, Inc. ("Urban Tea" or the "Company") (NASDAQ: MYT), a premier retailer of specialty teas and baked goods headquartered in Hunan, China, announced today that it has entered into a securities purchase agreement with certain accredited investors to sell
Under the terms of the purchase agreement, Urban Tea has agreed to sell approximately 18.8 million ordinary shares at a price of
Maxim Group LLC acted as sole placement agent for the offering.
The ordinary shares being sold pursuant to the registered direct offering is being made pursuant to a shelf registration statement on Form F-3 (File No. 333-227211), previously filed with the Securities and Exchange Commission (the "SEC") on September 6, 2018 and declared effective on September 19, 2018. Such securities are being offered only by means of a prospectus. A prospectus supplement and the accompanying prospectus relating to and describing the terms of the registered direct offering will be filed with the SEC. When available, copies of the prospectus supplement and the accompanying prospectus relating to the registered direct offering may be obtained at the SEC's website www.sec.gov or by contacting Maxim Group LLC, 405 Lexington Avenue, 2nd Floor, New York, NY 10174, at 212-895-3745.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
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 markets a wide range of trendy tea drinks, light meals, and pastries targeting the new urban generation in China, and has opened its first overseas store in New York City. The Company's products are focused on not only their taste but also their aesthetic presentation and health benefits. For more information, please visit: http://ir.h-n-myt.com/investor.
Forward-Looking Statements Disclaimer
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 development of the COVID-19 virus and the impact it will have on the Company's operations and the other 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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