In the news release, The9 Signed a Definitive Share Purchase
Agreement to Invest in GenAI LLM Digital Precision Medicine
Platform for Brain Disease WM Therapeutic, issued 26-Mar-2024 by The9 Limited over PR Newswire, we
are advised by the company that the 5th paragraph, should read "As
of the date hereof, the total number of issued and outstanding
shares of The9 is 1,675,281,127 (equivalent to 5,584,270 ADSs),
being the sum of 1,661,673,793Class A ordinary shares and
13,607,334 Class B ordinary shares.". The complete, corrected
release follows:
The9 Signed a Definitive Share Purchase Agreement to Invest in
GenAI LLM Digital Precision Medicine Platform for Brain Disease WM
Therapeutic
SHANGHAI, March 26,
2024 /PRNewswire/ -- The9 Limited (Nasdaq: NCTY)
("The9"), an established Internet company, today announced that it
signed a definitive share purchase agreement (the "Agreement") with
WM Therapeutic Co., Ltd. ("WM Therapeutic"), a company
operating Generative AI (GenAI) large language model (LLM)
multi-dimensional and multi-omics digital precision medicine
platform for brain disease, to purchase an additional 21.7% shares
of WM Therapeutic by cash and issuance of The9's restricted
shares. The9 had invested 8.3% shares of WM Therapeutic in 2021.
With the signing of this Agreement, The9 will own 30% of WM
Therapeutic. The9 is also granted a purchase option to purchase up
to 51% of the total shares of WM Therapeutic under certain
conditions.
WM Therapeutic develops GenAI large language model brain
disease screening platform and digital human personalized
psychological consultant, AI precision diagnostic equipment,
personalized neuromodulation treatment equipment, Generative AI
large language model and AI drug clinical research platform. These
products are based on AI multi-dimensional omics data analysis
technology, original drug discovery technology and brain-computer
interface research technology, cohort research on millions of brain
diseases, multi-dimensional omics database, constructing brain
disease digital targets and digital pathology models and individual
characteristics to achieve clinical precision diagnosis and
treatment of central nervous system diseases.
Pursuant to the Agreement, The9 will pay cash consideration of
US$1.5 million and will issue
251,290,500 restricted Class A ordinary shares (equivalent to
837,635 ADSs) to WM Therapeutic. The restricted Class A
ordinary shares to be issued to WM Therapeutic will be subject to
lock-up conditions and will only be released according to the
following schedule: (i) when the market capitalization of The9
reaches US$200 million,
4,737,000 Class A ordinary shares (equivalent to
15,790 ADSs) of The9 will be released from the lock-up;
(ii) when the market capitalization of The9 reaches
US$500 million,
1,894,800 Class A ordinary shares (equivalent to
6,316 ADSs) of The9 will be released from the lock-up, and
(iii) when the market capitalization of The9 reaches
US$1 billion, 947,400 Class A
Ordinary shares (equivalent to 3,158 ADSs) of The9 will be released
from the lock-up. The rest of the restricted shares shall be
released from the lock-up when either of the following conditions
are met: WM Therapeutic completes a qualified IPO and its
shares owned by The9 become freely tradable in the open market; or
if and when the The9 exercises its super pro-rata right and, as a
result, holds a minimum 51% of the then total share capital of WM
Therapeutic.
"Currently, in response to the huge unmet clinical needs, our
pipeline under development covers depression, anxiety, Alzheimer's
disease, bipolar disorder, autism, attention deficit and
hyperactivity disorder, and sleep disorders, etc. Our development
pipeline for each disease is at different clinical stages. We have
established partnerships with world-renowned pharmaceutical
companies and insurance companies. As a member of the Johnson &
Johnson JLab family, we use the WM-AI drug clinical research
platform to assist in the development of new central nervous system
drugs. As a WM-digital companion diagnostics product, it helps
clarifying disease subtypes, improving the success rate of clinical
trials, reducing the cost of new drug development and shortening
the time to market for pipelines under development," said Ms.
Yan Gao, Founder and CEO of WM
Therapeutic.
As of the date hereof, the total number
of issued and outstanding shares of The9 is 1,675,281,127
(equivalent to 5,584,270 ADSs), being the sum of 1,661,673,793Class
A ordinary shares and 13,607,334 Class B ordinary
shares.
Safe Harbor Statement
This current report contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the
United States Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology
such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "estimates" and similar statements. Such
statements are based upon management's current expectations and
current market and operating conditions and relate to events that
involve known or unknown risks, uncertainties and other factors,
all of which are difficult to predict and many of which are beyond
The9's control. The9 may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and
Exchange Commission ("SEC"), in its annual report to shareholders,
in press releases and other written materials and in oral
statements made by its officers, directors or employees to third
parties. Statements that are not historical facts, including
statements about The9's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: The9's goal and strategies; The9's expansion plans;
The9's future business development, financial condition and results
of operations; The9's expectations regarding demand for, and market
acceptance of, its products and services; The9's expectations
regarding keeping and strengthening its relationships with business
partners it collaborates with; general economic and business
conditions; and assumptions underlying or related to any of the
foregoing. Further information regarding these and other risks is
included in The9's filings with the SEC. All information provided
in this current report is as of the date hereof, and The9 does not
undertake any obligation to update any forward-looking statement,
except as required under applicable law.
The9 Limited
17 Floor,
No. 130, Wu Song Road,
Hong Kou District,
Shanghai 200080, PRC
About The9 Limited
The9 Limited (The9) is an Internet company listed on Nasdaq in
2004. The9 aims to become a global diversified high-tech Internet
company, and is engaged in blockchain business including the
operation of cryptocurrency mining. The9 is also
stepping into AI application business in different industries.
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SOURCE The9 Limited