The9 Limited (Nasdaq: NCTY) shares rose more than 83% to 6.500 in the pre-market session as it announced the signing of a partnership and collaboration term sheet with many investors in the cryptocurrency mining industry, including Jianping Kong,Ex Management and Co-Chair of Canaan Inc. Qifeng Sun, former Canaan Inc. Manager, Li Zhang and Enguang Li. According to the Term Sheet, The9 will issue ordinary shares in Class A and Warra.
The9 will grant ordinary shares and warrants of Class A to the holders according to the Term Sheet. The9 is expected to obtain, if realized, proceeds from transactions envisaged in the Term Sheet in compliance with specific pre-agreed terms. Investors are expected to use their mining industry expertise for cryptocurrencies to help The9 establish the mining company for cryptocurrencies. A new wholly-owned subsidiary, NBTC Limited, will be set up by The9 to run its blockchain and cryptocurrency company.