The9 Limited Announces Definitive Agreement Regarding Sale of 12% Senior Secured Convertible Bonds

The9 Limited (NASDAQ: NCTY) today announced that it has signed a definitive agreement with Splendid Days Limited (the "Investor") on November 24, 2015, pursuant to which the Investor will subscribe for 12% senior secured convertible bonds of the Company in an aggregate principal amount of US$40,050,000 (the "Notes") in addition to warrants in an aggregate principal amount of US$9,950,000. The Notes will be divided into three tranches, each of which will be convertible into ADSs of the Company at an initial conversion price of US$2.6, US$5.2 and US$7.8, respectively, per ADS, provided that at no time shall the Investor convert any portion of the Notes if subsequent to such conversion the Investor will hold more than 20% of the outstanding and issued shares of the Company. The Notes will bear interest at a rate of 12% per year, payable upon redemption of the Notes. The Notes will be due in 2018, subject to an extension for two years at the discretion of the Investor. The completion of the transaction is subject to customary closing conditions.The Investor is a wholly-owned subsidiary of Ark Pacific Special Opportunities Fund I, L.P. See full press release