SHANGHAI, April 28, 2016 /PRNewswire/ -- The9 Limited (the
"Company", NASDAQ: NCTY), an online game operator, today announced
that it has signed a definitive agreement (the "Agreement") with
L&A International Holding Limited, a Cayman Islands company with shares listed on
the Growth Enterprise Market of the Stock Exchange of Hong Kong
Limited under stock code 8195 ("L&A"), and certain other equity
holders of Red 5, to exchange approximately 30.6% equity interest
(on a fully diluted basis, the "Swapped Red 5 Interest") that it
owns in its subsidiary Red 5 Studios, Inc. ("Red 5") for
153,896,387 newly issued shares of L&A. The Company currently
owns approximately 63.4% equity interest in Red 5 on a fully
diluted basis. The total consideration for the transaction for all
the participating equity holders, including the Company, is
approximately US$76.5 million,
implying Red 5's valuation at US$170
million. The completion of the transaction is subject
to customary closing conditions stipulated in the
Agreement.
Red 5 is an online game developer based in the United States. Red 5 is developing
Firefall, a MMOFPS game, for which the Company has conducted a
limited commercial release in China in November
2015 and expect to have a large-scale commercial launch in
China in the second half of
2016.
About The9 Limited
The9 Limited is an online game developer and operator in
China. The9 Limited develops and
operates, directly or through its affiliates, its proprietary MMO
and mobile games including Firefall and Song of Knights. The9
Limited's joint venture has obtained an exclusive license for
publishing and operating Cross Fire 2 in China. The9 Limited also engages in mobile
advertising and mobile app education businesses. The9 Limited has
formed a joint venture with Shanghai ZTE to develop and operate
home entertainment set top box business.
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 transaction 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.
For further information, please contact:
Ms. Connie Sun
Investor Relations Specialist
The9 Limited
Tel: +86 (21) 5172-9990
Email: IR@corp.the9.com
Website: http://www.corp.the9.com/
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SOURCE The9 Limited