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The9 Announces Sale of 30% Stake in Red5 For $76.5M Stock of Acquiring Company

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The9 Limited (the "Company", NASDAQ: NCTY), an online game operator, today announced that it has signed a definitive agreement (the "Agreement") with L&A International Holding Limited, a Cayman Islands company with shares listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong Limited under stock code 8195 ("L&A"), and certain other equity holders of Red 5, to exchange approximately 30.6% equity interest (on a fully diluted basis, the "Swapped Red 5 Interest") that it owns in its subsidiary Red 5 Studios, Inc. ("Red 5") for 153,896,387 newly issued shares of L&A. The Company currently owns approximately 63.4% equity interest in Red 5 on a fully diluted basis. The total consideration for the transaction for all the participating equity holders, including the Company, is approximately US$76.5 million, implying Red 5's valuation at US$170 million. The completion of the transaction is subject to customary closing conditions stipulated in the Agreement.

Red 5 is an online game developer based in the United States. Red 5 is developing Firefall, a MMOFPS game, for which the Company has conducted a limited commercial release in China in November 2015 and expect to have a large-scale commercial launch in China in the second half of 2016.

Posted-In: News Asset Sales Press Releases

 

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