SHANGHAI, May 10, 2018 /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/
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SOURCE The9 Limited