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Urban Tea announces pricing of $6m ordinary share registered direct offering

Urban Tea

CHANGSHA, China – Urban Tea, Inc (NASDAQ: MYT), a premier retailer of specialty teas and baked goods headquartered in Hunan, China, has entered into a securities purchase agreement with certain accredited investors to sell $6.0 million of its ordinary shares in a registered direct offering.

Under the terms of the purchase agreement, Urban Tea has agreed to sell 15.0 million ordinary shares at a price of $0.40 per share. The gross proceeds to Urban Tea are estimated to be $6.0 million before deducting the placement agent fees and other estimated offering expenses. The registered direct offering is expected to close on or about August 3, 2020, subject to the satisfaction of customary closing conditions.

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.
04:58 04/08/2020.

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 markets a wide range of trendy tea drinks, light meals, and pastries targeting the new urban generation in China, and is currently in the process of opening 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.