SHANGHAI, Feb. 9, 2021 /PRNewswire/ -- The9 Limited
(Nasdaq: NCTY) ("The9"), an established Internet company, today
announced that it has entered into a standby equity distribution
agreement (the "SEDA") with YA II PN, LTD. , a Cayman Islands exempt limited partnership
managed by Yorkville Advisor Global, LP (the "Purchaser"), dated
February 5, 2021, pursuant to which
The9 would be able to sell up to US$100.0
million of its ADSs solely at The9's request based on The9's
funding requirement at any time during the 36 months following the
date of the SEDA.
Pursuant to the SEDA, the preliminary purchase price per ADS
(the "Preliminary Purchase Price") shall initially be 90% of the
average of the 3 lowest daily volume weighted average price of the
Company's ADSs during the five consecutive trading days immediately
prior to the delivery of an advance notice by The9 (the
"Preliminary Pricing Period") (the date of payment of Preliminary
Purchase Price is the "Preliminary Closing Date"), which shall be
adjusted to the greater of (A) 90% of the average of the 3 lowest
daily volume weighted average price of the Company's ADSs during
the Preliminary Pricing Period and during the five consecutive
trading days commencing on the trading day immediately following
the Preliminary Closing Date, or commencing on the Preliminary
Closing Date if the ADSs are received by the Purchaser prior to the
close of trading on the Preliminary Closing Date (the "Secondary
Pricing Period"), or (B) 85% of the average of the five daily
volume weighted average price of the Company's ADSs during the
Secondary Pricing Period (the "Final Purchase Price"). If the Final
Purchase Price is less than the Preliminary Purchase Price, The9
shall deliver additional shares to the Purchaser. If the Final
Purchase Price is greater than the Preliminary Purchase Price, the
Purchaser shall make payment of the additional amount to The9. The
purchase would be subject to certain ownership limitations as
provided under the SEDA. The Purchaser has agreed that, during the
term of the SEDA, neither the Purchaser nor its affiliates will
engage in any short sales or hedging transactions with respect to
the Company's Class A ordinary shares or ADSs.
The9 intends to use the proceeds from the potential offering of
the ADSs pursuant to the SEDA to fund its business growth.
About The9 Limited
The9 Limited (The9) is an Internet company based in China listed on Nasdaq in 2004. The9 aims to
become a diversified high-tech Internet company.
Website: https://www.the9.com/en
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SOURCE The9 Limited