The9 Limited Raised US$12 million in a Private Placement Transaction to Fund Business Growth

Rhea-AI Summary

The9 Limited (Nasdaq: NCTY) has closed a private placement securities purchase transaction, raising a total of US$12 million. The transaction includes the sale and issuance of 150,000,000 Class A ordinary shares, a two-year 3% per annum convertible promissory note, and warrants to purchase an aggregate of 120,000,000 Class A ordinary shares. The Company plans to use the proceeds to fund future growth.

SHANGHAI, Nov. 30, 2023 /PRNewswire/ -- The9 Limited (Nasdaq: NCTY) (the "Company"), an established Internet company, today announced that it has closed a private placement securities purchase transaction with Bripheno Pte. Ltd., a Singapore limited liability company, pursuant to which the Company sold and issued:

• 150,000,000 Class A ordinary shares (equivalent to 500,000 American Depository Shares, or ADSs) at a price of USD12 per ADS,
• two-year 3% per annum convertible promissory note at the purchase price of US$6 million with the conversion price of USD15 per ADS and
• warrants to purchase an aggregate of 120,000,000 Class A ordinary shares (equivalent to 400,000 ADSs) at an exercise price of US$60 per ADS. The warrants will expire two years from the date of issuance.

All the above securities are subject to a 6-month lock up period. The Company has raised a total of US$12 million as the aggregate consideration for the securities. The Company plans to use proceeds to fund future growth.

The9 Limited
17 Floor,
No. 130, Wu Song Road,
Hong Kou District,
Shanghai 200080, PRC

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.

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SOURCE The9 Limited

FAQ

What is the recent announcement made by The9 Limited (Nasdaq: NCTY)?

The recent announcement involves the closing of a private placement securities purchase transaction, raising a total of US$12 million.

How much did The9 Limited (Nasdaq: NCTY) raise in the transaction?

The Company raised a total of US$12 million in the transaction.

What are the securities involved in the transaction by The9 Limited (Nasdaq: NCTY)?

The securities involved in the transaction include the sale and issuance of 150,000,000 Class A ordinary shares, a two-year 3% per annum convertible promissory note, and warrants to purchase an aggregate of 120,000,000 Class A ordinary shares.

What are the plans for the proceeds raised by The9 Limited (Nasdaq: NCTY)?

The Company plans to use the proceeds to fund future growth.