SHANGHAI/
PRNewswire/ -- The9 Limited (Nasdaq: NCTY) (the "Company" or "The9"), an established Internet company, today announced that it has entered into a term sheet with Plutux Limited, a company incorporated in Gibraltar ("Plutux"), and a shareholder of Plutux ("Participating Shareholder") for the issuance and sale of 12,500,000 ordinary shares of the Company, par value of US$0.01, to the Participating Shareholder at US$1.2 per ordinary share (which equals to US$3.6 per American Depositary Share), in exchange for a minority equity interest in Plutux as consideration (the "Transaction").
The9 expects that this Transaction with Plutux will create synergies between The9's blockchain-related services business and Plutux's cryptocurrency exchange business. Going forward The9 expects to establish a complete ecosystem and business model to serve its blockchain partners' projects more efficiently and effectively.
Since the beginning of this year, The9 has implemented a number of important initiatives to rapidly develop its blockchain consulting services, and has invested in a number of overseas blockchain projects. The9 will continue to strengthen its blockchain consulting business by providing one-stop full-scale blockchain project planning, technology development, digital asset distribution, investment and financing services to its blockchain partners.
The completion of the Transaction is subject to the parties' execution of a definitive agreement and customary closing conditions to be stipulated therein. Except for certain provisions relating to confidentiality, expenses and governing law provisions, the term sheet does not constitute legally binding obligation on the parties to consummate the transaction.
About The9 Limited
The9 Limited is an Internet company based in China. The9 has stepped into blockchain-related business. The9 also develops and/or operates its proprietary mobile games and web games, including the CrossFire New Mobile Games, Audition mobile, Knight Forever and Q Jiang San Guo.
About Plutux
Plutux is an exchange that allows cryptocurrency to cryptocurrency trading in a mobile centric environment that stays ahead of the industry through micro innovations. Their core offerings include advanced trade orders, algorithmic trading strategies, academy, contests, activity campaigns and referral programs. The founding team is primarily comprised of alumni from Harborx (a licensed forex brokerage that has been sold), STI Financial Group (a Hong Kong investment and hedge fund management group), and Green Tomato (one of Hong Kong's leading innovation consultancy) and have top-in-class exchange operations, business development, investment, quantitative trading, mobile application development, and regulatory licensing experiences.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, statements about the potential transactions may constitute forward-looking statements. Statements that are not historical facts, including statements about The9's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, political and economic policies of the Chinese government, the laws and regulations governing the online game industry, information disseminated over the Internet and Internet content providers in China, intensified government regulation of Internet cafes, The9's ability to retain existing players and attract new players, The9's ability to license, develop or acquire additional online games that are appealing to users, The9's ability to anticipate and adapt to changing consumer preferences and respond to competitive market conditions, and other risks and uncertainties outlined in The9's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 20-F. The9 does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
Website: http://www.the9.com/en/
SOURCE The9 Limited