SHANGHAI, April 10, 2017 /PRNewswire/ -- The9 Limited (the
"Company" or "The9") (NASDAQ:
NCTY), an online game operator, today announced that it has entered
into a term sheet with each of IE Limited, and Ark Pacific Capital
Management Limited, a company incorporated in Hong Kong ("Ark Pacific"), for the issuance
and sale of a total of 25,000,000 ordinary shares of the Company,
each with par value US$0.01, to IE
and Ark Pacific for a total consideration of US$30 million, or US$1.2 per share (the sale to each of IE and Ark
Pacific, a "Transaction"). Each of IE and Ark Pacific will
subscribe for 50% of the total shares to be issued (i.e. 12,500,000
shares) under the Transaction. IE will pay for its part of
consideration with its stake of an online marketing platform
Smartposting, while Ark Pacific will pay for its part of
consideration in cash. The9 expects that this Transaction with
Smartposting will create synergies between The9's business and
Smartposting's business.
Pursuant to the term sheet with Ark Pacific, the shares to be
subscribed by Ark Pacific will be subject to a redemption right.
Both parties agree that if the Company's ADS market price is below
US$4 for a specified period of time
during the second year after completion of the Transaction, Ark
Pacific can exercise its redemption right. The proceeds from this
Transaction with Ark Pacific will be deposited at a bank account
held under the name of the Company, which will be used to secure
the Company's payment of redemption price upon any exercise of the
redemption right.
The completion of the each Transaction is subject to the
parties' execution of a definitive agreement and customary closing
conditions to be stipulated therein. Subject to satisfaction of due
diligence by The9 on Smartposting and receipt of board and
shareholder approvals, if required, the term sheet with IE is
legally binding. Except for the confidentiality provision, the term
sheet with Ark Pacific does not constitute legally binding
obligation on the Company or Ark Pacific to consummate the
Transaction.
About The9 Limited
The9 Limited is an online game developer and operator in
China. The9 develops and/or
operates, directly or through its affiliates, its proprietary
mobile games and web games, including CrossFire new mobile game,
Audition AR and Soul Awake. The9's joint venture has also obtained
an exclusive license for publishing and operating CrossFire 2,
which is under development by a third-party game developer, in
China. The9 also engages in mobile
advertising and mobile app education businesses.
About IE Limited
IE Limited operates an influencer marketing platform and Webtoon
game developer. IE seeks to promote marketing solutions with the
best return for advertisers and deliver the most enjoyable gaming
experience. Based on intelligence generated from its influencer
marketing platform, IE Limited develops games in-house and
subsequently advertise via the most effective channels on its
platform.
About Smartposting
Smartposting is the No. 1 influencer marketing platform in
Korea. SmartPosting trusts that influencers know their audience
best and empowers them to lead the entire process, resulting in
highly effective advertising campaigns. Smartposting has an
experienced management team and mature in-house technology which
enables it to gain valuable customer insights useful for optimizing
campaigns.
About Ark Pacific
Ark Pacific is an alternative asset manager in Asia with a focus on Greater
China. Through innovative and flexible approach to capital
structure, Ark Pacific invests with entrepreneurs and management
teams to create long-term value. Ark Pacific manages Ark
Pacific Special Opportunities Fund I, L.P., which is a private
equity special situations fund.
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.
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