Urban Tea Receives Regulatory Approval to Seek Franchisees for Business Expansion Throughout China
CHANGSHA, China, June 8, 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 we received the approval from the Commercial Franchise Enterprise Administration on May 20th, 2020 and was approved to seek franchisees for growth opportunities throughout China. Hunan Ming Yun Tang Brand Management Co., Ltd. ("Hunan MYT"), the Company's variable interest entity, has officially obtained the "Business Franchise Enterprise" license issued by the Hunan Provincial Department of Commerce. The license enables the Company to grow its business through franchising with its brand "Buoyance Manor," in addition to operating corporate stores within China.
Management believes that due to Hunan MYT's efficient brand operation, management and supply chain system, coupled with newly obtained franchise qualifications, we are well positioned to attract potential franchisees across the country. The Buoyance Manor franchising opportunity represents an exceptional opportunity in the tea retailer industry. In addition to providing franchisees with brand publicity, store design, staff training, and standard administration services, the centralized kitchen will also provide finished products to franchisees. Given the extensive collaboration with major raw material and equipment suppliers, franchisees will always be offered supplies of the best quality at a competitive price.
Mr. Long Yi, Chief Executive Officer of Urban Tea, commented: "We are excited about expanding our brand and growing the business via franchising. This is a strong indicator that the Company has ushered in a new development opportunity. There is tremendous growth potential for franchise businesses, and the strength of our brand and management; we look forward to achieving long-term, successful partnerships with our franchisees."
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, Shanghai Ming Yun Tang Tea Limited ("Shanghai MYT") which controls Hunan Ming Yun Tang Brand Management Co., Ltd. ("Hunan MYT"), 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. We expect to start selling our products in our managed and JV stores in mid-2019. For more information, please visit: http://ir.h-n-myt.com/investor.
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 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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