The9 Announces Cancellation of Warrants and Investment in the Initial Public Offering of Nano Labs

Rhea-AI Summary

The9 Limited (NASDAQ: NCTY) has announced a cancellation agreement with JPKONG LTD. and Qifeng Sun Ltd. to negate Tranche IV Warrants, which allowed the purchase of a total of 34,648,640 Class A ordinary shares at $0.2667 each. This cancellation does not impact other warrants from the January 2021 agreement. Additionally, The9 has strategically invested $3 million in the IPO of Nano Labs Ltd (NASDAQ: NA), acquiring 260,642 American depositary shares. This move aligns with The9's goal to diversify as a high-tech Internet company.

Positive

• Strategic $3 million investment in Nano Labs Ltd's IPO.
• Acquisition of 260,642 American depositary shares in Nano Labs, potentially broadening The9's market presence.

Negative

• None.

SHANGHAI, July 14, 2022 /PRNewswire/ -- The9 Limited (NASDAQ: NCTY) ("The9" or the "Company") today announced that it has entered into a cancellation agreement with JPKONG LTD. and Qifeng Sun Ltd., entities controlled by Mr. Jianping Kong and Mr. Qifeng Sun, respectively, to cancel the Tranche IV Warrants that were issued to them pursuant to a share subscription and warrant purchase agreement dated January 25, 2021 among The9, JPKONG LTD., Qifeng Sun Ltd. and other parties named thereto (the "Purchase Agreement"). The Tranche IV Warrants that were cancelled represented the warrants to purchase 23,099,093 Class A ordinary shares of the Company at the exercise price of US$0.2667 per Class A ordinary share issued to JPKONG LTD. and the warrants to purchase 11,549,547 Class A ordinary shares of the Company at the exercise price of US$0.2667 per Class A ordinary share issued to Qifeng Sun Ltd. pursuant to the Purchase Agreement. Such cancellation will not affect the terms or conditions of any other warrants issued pursuant to the Purchase Agreement.

The9 also announced that, as approved by the board of directors of the Company and its audit committee, the Company has made a US$3 million strategic investment in the initial public offering of Nano Labs Ltd (NASDAQ: NA) ("Nano Labs"), a company controlled by Mr. Jianping Kong and Mr. Qifeng Sun. The Company subscribed for, and has been allocated an aggregate of 260,642 American depositary shares ("ADSs") of Nano Labs.

About The9 Limited

The9 Limited (The9) is an Internet company listed on Nasdaq in 2004. The9 aims to become a global diversified high-tech Internet company, and is engaged in blockchain business including the operation of cryptocurrency mining and Metaverse celebrity social platform NFTSTAR.

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SOURCE The9 Limited

FAQ

What is the significance of The9's cancellation of Tranche IV Warrants?

The cancellation of Tranche IV Warrants eliminates the potential dilution of shares, as it prevents the issuance of 34,648,640 Class A ordinary shares.

How much did The9 invest in Nano Labs Ltd's IPO?

The9 Limited invested $3 million in the initial public offering of Nano Labs Ltd.

What is the potential impact of The9's investment in Nano Labs?

The investment may enhance The9's portfolio and strengthen its position in the high-tech Internet sector.

How many shares did The9 acquire from Nano Labs Ltd?

The9 was allocated 260,642 American depositary shares of Nano Labs Ltd.