SHANGHAI, Nov. 16, 2015 /PRNewswire-FirstCall/ -- The9
Limited (the "Company," NASDAQ: NCTY), an online game developer and
operator, today announced that it has entered into a legally
binding term sheet with Splendid Days Limited (the "Investor") on
November 13, 2015, pursuant to which
the Investor has agreed to subscribe 12% senior secured convertible
bonds of the Company due 2018 in an aggregate principal amount of
US$45 million (the "Notes") in
addition to warrants in an aggregate notional amount of
US$5 million. The Notes will be
divided into three tranches, each of which will be convertible into
ADSs or ordinary shares of the Company at an initial conversion
price of US$2.6, US$5.2 and US$7.8,
respectively, per ADS or ordinary share, and will bear interest at
a rate of 12% per year, payable upon redemption of the Notes. The
completion of the transaction is subject to the parties' execution
of definitive agreements and 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 into mobile advertising and mobile app
education businesses. The9 Limited 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'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.
Wendy Weng
Investor Relations Manager
The9 Limited
Tel: +86 (21) 5172-9990
Email: IR@corp.the9.com
Website: http://www.corp.the9.com/
SOURCE The9 Limited