The9 Signed a Definitive Share Purchase Agreement to Invest in AI-Powered Educational Technology Company

The9 Limited, an established Internet company based in China, announced on June 2, 2024, that it had signed a definitive share purchase agreement with Wuhan Weixiang Science And Technology Co., Ltd., an innovative educational technology company specializing in artificial intelligence (AI) in China. According to the agreement, The9 will invest in WeiXiang by purchasing a 19% stake in the company through a combination of cash and the issuance of The9's restricted shares.

Wuhan Weixiang Science And Technology Co., Ltd., founded in Wuhan, Hubei Province, China, is a leading educational technology company that focuses on integrating AI technology into its educational products and services. The company aims to enhance the learning experience for students by providing personalized and interactive educational content, as well as intelligent tutoring systems that adapt to each student's learning style and pace.

The9 Limited, listed on the NASDAQ Global Market under the ticker symbol "NCTY," is a leading Internet company that provides various online entertainment services, including online games and e-commerce platforms. With the increasing trend towards digital education and the integration of technology into the educational sector, The9's investment in WeiXiang represents the company's strategic move to expand its business into the educational technology market.

Under the terms of the agreement, The9 will purchase approximately 11.5 million shares of WeiXiang at RMB 1.55 per share, representing a total investment of approximately RMB 17.6 million (around USD 2.6 million) in cash. In addition, The9 will issue approximately 1.5 million restricted shares to WeiXiang, subject to certain vesting conditions and lock-up restrictions.

The closing of the transaction is subject to customary conditions, including regulatory approvals and the satisfaction of certain conditions precedent. Upon completion of the transaction, The9 will become one of the significant shareholders of WeiXiang and will have the right to appoint one member to the board of directors of WeiXiang.

The investment in WeiXiang is expected to enhance The9's presence in the educational technology market and provide opportunities for synergies and collaborations between the two companies. The9's extensive user base and resources can help promote WeiXiang's educational products and services to a wider audience, while WeiXiang's advanced technology and expertise can contribute to the development of new and innovative offerings for The9's customer base.

The investment in WeiXiang is part of The9's ongoing efforts to diversify its business and expand its presence in the Chinese market. By investing in cutting-edge technologies and innovative companies, The9 aims to create value for its shareholders and contribute to the growth of the Chinese tech industry.

The transaction is expected to close within the third quarter of 2024, subject to the satisfaction of the customary closing conditions. Further details regarding the transaction will be disclosed in due course.