SHANGHAI, June 15, 2017 /PRNewswire/ -- The9 Limited (the
"Company" or "The9") (NASDAQ: NCTY), an online game operator, today
announced that it has entered into a definitive agreement with IE
Limited, a company incorporated under the laws of Korea with shares
listed on the Korean Securities Dealers Automated Quotations of the
Korea Exchange under stock code 023430 ("IE"), for the issuance and
sale of 12,500,000 ordinary shares of the Company, each with par
value US$0.01, to IE for
a total consideration of US$15
million, or US$1.2 per share (the "Transaction"). IE
will pay for the consideration with a 14.55% equity interest in its
wholly owned subsidiary, Smartposting Co., Ltd. ("Smartposting"),
which operates Smartposting, an online marketing platform in Korea.
The Company expects that the investment in Smartposting will create
synergies between its business and Smartposting's business.
The completion of the Transaction is subject to customary
closing conditions and will take place in two stages, whereby The9
will first deliver its shares to IE, followed by receipt of the
consideration from IE within a specified period of time thereafter.
Upon The9's delivery of its shares to IE pursuant to the
Transaction, the total number of outstanding shares of the Company
will be increased to 67,744,036 shares.
About The9 Limited
The9 Limited is an online game developer and operator in
China. The9 develops and/or
operates, directly or through its affiliates, its proprietary
mobile games and web games, including CrossFire new mobile game,
Audition AR and Soul Awake. The9's joint venture has also obtained
an exclusive license for publishing and operating CrossFire 2,
which is under development by a third-party game developer, in
China. The9 also engages in mobile
advertising and mobile app education businesses.
About IE Limited
IE Limited operates an influencer marketing platform and Webtoon
game developer. IE seeks to promote marketing solutions with the
best return for advertisers and deliver the most enjoyable gaming
experience. Based on intelligence generated from its influencer
marketing platform, IE Limited develops games in-house and
subsequently advertise via the most effective channels on its
platform.
About Smartposting
Smartposting is the No. 1 influencer marketing platform in
Korea. Smartposting trusts that influencers know their audience
best and empowers them to lead the entire process, resulting in
highly effective advertising campaigns. Smartposting has an
experienced management team and mature in-house technology which
enables it to gain valuable customer insights useful for optimizing
campaigns.
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. Connie Sun
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