CHANGSHA, China – Urban Tea Inc. (the “Company,” “we” or ” Urban Tea “) (NASDAQ: MYT), a premier retailer of specialty teas and baked goods based in Hunan, China , announced today that it has entered into a share purchase agreement (the “Agreement”), pursuant to which the Company agreed to pay $400,000 in cash to acquire 80% of the equity interest in Guokui Management Inc. (“Guokui”).
Guokui is incorporated under the laws of New York State and has been operating CROP CIRCLE, a casual street food restaurant in New York City , since August 2020 . The Agreement also includes details of how the two parties may collaborate in the future.
Upon closing of the transaction contemplated by the Agreement, MYT will own the registered trademark of “CROP CIRCLE” in the United States and operate the Crop Circle restaurant, which features guokui, an oval shaped baked flatbread with various filling selections, a popular street snack originating from northern China’s Shaanxi Province .
CROP CIRCLE also provides other meals combining classic and modern styles. MYT currently owns the trademark “MENO” and operates MENO, a modern tea and coffee shop with a small curated food menu. The ownership of these two restaurants marks the implementation of MYT’s initial brand strategy in the United States . Going forward, the Company plans to deepen its roots in the US market based on the restaurants’ operating performances.
Ms. Kan Lu, CFO of Urban Tea , commented: “The signing of the Agreement enables the Company to better navigate the casual food and drink market in NYC. Through building brand awareness and launching new restaurants, the partnership with Guokui shareholders will take our expansion plan on an exciting journey.
We remain committed to our common core values of providing culturally inspired food that is loved by customers in America. With Guokui’s management team, we look forward to opening more restaurants and bringing traditional Chinese cuisine to more guests across the U.S.”
