Benzinga | Mar 9, 2021 06:02AM EST

The9 Signed Legally Binding Memorandums Of Understanding With Three Bitcoin Mining Machine Owners To Purchase Bitcoin Mining Machines; Co. Will Issue 5,883,750 Class A Ordinary Shares (196,125 ADSs) At $38.51 To Sellers

SHANGHAI, March 9, 2021 /PRNewswire/ -- The9 Limited (NASDAQ:NCTY) ("The9"), an established Internet company, today announced that it signed three legally binding Memorandums of Understanding (collectively the "MOUs") with three unrelated Bitcoin mining machine owners to purchase Bitcoin mining machines by the issuance of Class A ordinary shares. This batch of Bitcoin mining machines includes different brands such as AvalonMiner, AntMiner and WhatsMiner, with an additional total number of 10,252 units and an additional total hash rate of approximately 192PH/S. According to the MOUs, The9 will issue approximately 5,883,750 Class A ordinary shares (equivalent to 196,125 ADSs) to the sellers based on The9 share price of US$38.51 prior to the MOUs, with a lock up period of 6 months. The number of Class A ordinary shares to be issued is subject to certain price adjustment mechanisms to be assessed 6 months after the signing of the definitive agreements. The9 will designate an independent valuation firm to conduct examination and assessment of the Bitcoin mining machine fair market value, and will make adjustment to the number of Class A ordinary shares to be issued if needed.