The9 Limited Announces Potential Sale of Senior Secured Convertible Bonds and Warrants

2015-11-16 21:25 1764

SHANGHAI, November 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

Source: The9 Limited