The9 Limited Announces Issuance of Restricted Shares to Certain Directors, Employees and Consultants

Rhea-AI Summary

The9 Limited (Nasdaq: NCTY) announced on June 17, 2020, the approval to issue 29.1 million restricted Class A ordinary shares as incentive awards. This includes 15.6 million shares tied to performance targets and 13.5 million shares subjected to a six-month transfer restriction with incremental removal based on service conditions. Failure to meet these conditions may lead to forfeiture. The9 is aiming to diversify and enhance its position in the high-tech Internet sector.

Positive

• Issuance of 29.1 million restricted shares enhances employee and consultant motivation.
• Significant portion (15.6 million shares) is linked to performance targets, incentivizing better performance.

Negative

• Potential forfeiture of shares if performance targets or service conditions are not met.
• Restrictions on transferability for 13.5 million shares could limit immediate liquidity for recipients.

SHANGHAI, June 17, 2020 /PRNewswire/ -- The9 Limited (Nasdaq: NCTY) ("The9" or the "Company"), an established Internet company, today announced that its board of directors and board committees have authorized and approved the issuance of an aggregate number of 29,100,000 restricted Class A ordinary shares (equivalent to 9,700,000 ADSs) of the Company to certain directors, officers, employees and consultants of the Company as share incentive awards for their services to the Company pursuant to its Eighth Amended and Restated 2004 Stock Option Plan. Among those restricted Class A ordinary shares grants, 15,600,000 restricted Class A ordinary shares (equivalent to 5,200,000 ADSs) are subject to restrictions on transferability that would be removed once certain pre-agreed performance targets are met, and 13,500,000 restricted Class A ordinary shares (equivalent to 4,500,000 ADSs) are subject to restrictions on transferability for a six-month period that would be removed in installments once certain service period conditions are met. In the event that the performance targets or the service period conditions are not met, the underlying restricted Class A ordinary shares may be forfeited and cancelled.

About The9 Limited

The9 Limited (The9) is an Internet company based in China listed on Nasdaq in 2004. The9 aims to become a diversified high-tech Internet company.

 

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SOURCE The9 Limited

FAQ

What is the significance of The9 Limited's share issuance on June 17, 2020?

The9 Limited approved the issuance of 29.1 million restricted shares to incentivize directors, employees, and consultants.

How many shares are subject to performance targets at The9 Limited?

15.6 million restricted shares are tied to performance targets.

What happens if performance or service conditions are not met for The9 Limited shares?

Restricted shares may be forfeited and cancelled if conditions are not met.

What is the total number of shares issued by The9 Limited as of June 17, 2020?

A total of 29.1 million restricted Class A ordinary shares were issued.