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