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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