Benzinga | Apr 21, 2021 07:45AM EDT

The9 To Invest C$4M In Vancouver's Skychain Technologies For Construction Of 12 MW Cryptocurrency Mining Facility

* The9 Ltd (NASDAQ: NCTY) inked a binding term sheet regarding a C$4 million investment in Vancouver's Blockchain Infrastructure services and power solutions provider, Skychain Technologies Inc (OTC:SKTCF), for the construction and operation of a 12 MW cryptocurrency mining facility situated in Birtle, Manitoba, Canada.

* The investment included a 4-year convertible note of C$2 million with an additional year extension option. The investment also included a private placement of C$2 million.

* Each private placement unit consisted of one share and one warrant. The warrant entitled the company to additional share procurement of Skychain for an exercise term of three years.

* The9 also sought cheaper electricity-driven and regulation-compliant global mining facilities for the positioning of its cryptocurrency mining machines.

* Price action: NCTY shares are down by 1.91% at $19.01 in the premarket session on the last check Wednesday.