The9 Limited (NasdaqCM:NCTY) singed legally binding term sheet to acquire 51% stake in Shenma Limited for $15.3 million on March 5, 2024. The consideration consists of $1 million in cash and issue Class A ordinary shares to Shenma or its shareholders with the value of $14.3 million. The value of each share will be determined by the average closing price of The9's American depositary shares ("ADS"), each representing 300 Class A ordinary shares of The9, for a period of 20 trading days prior to the signing of the definitive agreement.

The restricted Class A ordinary shares to be issued to Shenma 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 $200 million, 33,938,400 Class A ordinary shares (equivalent to 113,128 ADSs) of The9 will be released from the lock-up; (ii) when the market capitalization of The9 reaches $500 million, 13,575,300 Class A ordinary shares (equivalent to 45,251 ADSs) of The9 will be released from the lock-up, and (iii) when the market capitalization of The9 reaches $1 billion, 6,787,800 Class A Ordinary shares (equivalent to 22,626 ADSs) of The9 will be released from the lock-up. The rest of the restricted Class A ordinary shares will be released from the lock-up when Shenma completes a qualified IPO and its shares owned by The9 become freely tradable in the open market.