Breaking News: Urban Tea Announces Entry into Definitive Agreement to Acquire Two Companies | Financial Buzz

Breaking News: Urban Tea Announces Entry into Definitive Agreement to Acquire Two Companies

Urban Tea Inc. (NASDAQ: MYT), a premier retailer of specialty teas and baked goods based in Hunan, China, announced today that its wholly-owned subsidiary Hunan Ming Yun Tang Brand Management Co., Ltd. (“Ming Yun Tang”) has entered into an acquisition agreement (the “Agreement”) to acquire 51% equity interests of two Chinese entities : Chuangyeying Brand Management Co., Ltd. (“CYY”) and Store Master Food Trading Co., Ltd. (“Store Master”).

CYY owns a franchise permit to operate franchise stores in China and also holds multiple registered trademarks in China. An impressive 302 tea beverages franchisees fall under its management. Store Master specializes in supply chain management, product research and development, and optimizing long-term and stable supply chains. Additionally, Store Master owns a scalable warehouse with an advanced logistics management system and supplies raw material to its managing franchisees.

Under the terms of the Agreement, Urban Tea will acquire 51% of CYY and Store Master for cash contribution of approximately RMB 3.1 million (approximately $468,000). Ming Yun Tang agreed to contribute additional cash based on CYY and Store Master’s achievement of certain revenue, net income and number of new stores in the next three years. Both companies’ executive teams have years of extensive experience in supply chain and franchise management. Their expertise will be a valuable asset to Ming Yun Tang’s domestic business. Our collaborations will play a critical role by improving the supply chain and product R&D, as well as driving rapid growth of franchisee network and sales. CYY and Store Master will receive additional rewards according to certain earn-out schedules based on their business performance and other financial indicators.

Urban Tea Chief Executive Officer Mr. Yi Long commented, “The acquisition is a major milestone for Urban Tea. We now operate franchise stores in 28 different provinces and municipalities, taking us to the next level in competition and challenges. With a rebranded business strategy, we are confident that the acquisition will help us grow our platform, enhance our supply chain, and provide truly diversified products and services to our clients. Meanwhile, we expect our footprint in the overseas market will continue to grow. With the combination of CYY’s and Store Master’s advanced supply chain technology, their team’s operational skills, and our integrated resources, we believe we will achieve long-term growth by attracting more franchisee opportunities and providing customers with the best-in-store products and services. Most importantly, this growth is expected to maximize our shareholders’ value as well.”

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 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. For more information, please visit: http://ir.h-n-myt.com/investor.

Sponsored Content Release. Click for Full Disclosure

  • Sponsored Content Release

    FinancialBuzz.com, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, Personal Finance, Politics, Entertainment, in-depth broadcasts on Stock News, Market Analysis and Company Interviews. A pioneer in the financially driven digital space, video production and integration of social media, FinancialBuzz.com creates 100% unique original content. FinancialBuzz.com also provides financial news PR branding, marketing and advertising for third parties for disseminating news and original content through our unique media platform that includes Newswire Delivery, Digital Advertising, Social Media Relations, Video Production, Broadcasting, and Financial Publications.

    Please Note: FinancialBuzz.com is not a financial advisory or advisor, investment advisor or broker-dealer and do not undertake any activities that would require such registration. The information provided on http://www.FinancialBuzz.com (the ‘Site’) is either original financial news or paid advertisements provided [exclusively] by our affiliates (sponsored content), FinancialBuzz.com, a financial news media and marketing firm enters into media buys or service agreements with the companies which are the subject to the articles posted on the Site or other editorials for advertising such companies. We are not an independent news media provider and therefore do not represent or warrant that the information posted on the Site is accurate, unbiased or complete. FinancialBuzz.com receives fees for producing and presenting high quality and sophisticated content on FinancialBuzz.com along with other financial news PR media services. FinancialBuzz.com does not offer any personal opinions, recommendations or bias commentary as we purely incorporate public market information along with financial and corporate news. FinancialBuzz.com only aggregates or regurgitates financial or corporate news through our unique financial newswire and media platform. For urban tea inc., investor relations, video production, filming editing, news reporting, financial and corporate news dissemination, FinancialBuzz.com has been compensated five thousand dollars by the company. Our fees may be either a flat cash sum or negotiated number of securities of the companies featured on this editorial or site, or a combination thereof. The securities are commonly paid in segments, of which a portion is received upon engagement and the balance is paid on or near the conclusion of the engagement. FinancialBuzz.com will always disclose any compensation in securities or cash payments for financial news PR advertising. FinancialBuzz.com does not undertake to update any of the information on the editorial or Site or continue to post information about any companies the information contained herein is not intended to be used as the basis for investment decisions and should not be considered as investment advice or a recommendation. The information contained herein is not an offer or solicitation to buy, hold or sell any security. FinancialBuzz.com, members and affiliates are not responsible for any gains or losses that result from the opinions expressed on this editorial or Site, company profiles, quotations or in other materials or presentations that it publishes electronically or in print. Investors accept full responsibility for any and all of their investment decisions based on their own independent research and evaluation of their own investment goals, risk tolerance, and financial condition. FinancialBuzz.com. By accessing this editorial and website and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy, as may be amended from time to time. None of the content issued by FinancialBuzz.com constitutes a recommendation for any investor to purchase, hold or sell any particular security, pursue a particular investment strategy or that any security is suitable for any investor. This publication is provided by FinancialBuzz.com. Each investor is solely responsible for determining whether a particular security or investment strategy is suitable based on their objectives, other securities holdings, financial situation needs, and tax status. You agree to consult with your investment advisor, tax and legal consultant before making any investment decisions. We make no representations as to the completeness, accuracy or timeless of the material provided. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. For our full disclaimer, disclosure and Terms of Use, please visit: http://www.financialbuzz.com.