SHANGHAI, Nov. 25, 2015 /PRNewswire-FirstCall/ -- The9
Limited (the "Company," NASDAQ: NCTY), an online game operator,
today announced that it has signed a definitive agreement with
Splendid Days Limited (the "Investor") on November 24, 2015, pursuant to which the Investor
will subscribe for 12% senior secured convertible bonds of the
Company in an aggregate principal amount of US$40,050,000 (the "Notes") in addition to
warrants in an aggregate principal amount of US$9,950,000. The Notes will be divided into
three tranches, each of which will be convertible into ADSs of the
Company at an initial conversion price of US$2.6, US$5.2 and
US$7.8, respectively, per ADS,
provided that at no time shall the Investor convert any portion of
the Notes if subsequent to such conversion the Investor will hold
more than 20% of the outstanding and issued shares of the Company.
The Notes will bear interest at a rate of 12% per year, payable
upon redemption of the Notes. The Notes will be due in 2018,
subject to an extension for two years at the discretion of the
Investor. The completion of the transaction is subject to customary
closing conditions.
The Investor is a wholly-owned subsidiary of Ark Pacific Special
Opportunities Fund I, L.P. ("APSOFI"). APSOFI is a private equity
special situations fund managed by Ark Pacific.
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 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 Limited'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 Limited's ability to retain
existing players and attract new players, The9 Limited's ability to
license, develop or acquire additional online games that are
appealing to users, The9 Limited's ability to anticipate and adapt
to changing consumer preferences and respond to competitive market
conditions, and other risks and uncertainties outlined in The9
Limited's filings with the U.S. Securities and Exchange Commission,
including its annual reports on Form 20-F. The9 Limited does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law.
For further information, please contact:
Ms. Wendy Weng
Investor Relations Manager
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