The9 signed a definitive share purchase agreement with WM Therapeutic, a company operating Generative AI large language model 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. The9 will pay cash consideration of $1.5M and will issue 251,290,500 restricted Class A ordinary shares to WM Therapeutic. The Class A ordinary shares to be issued to WM Therapeutic will be subject to lock-up conditions and will only be released when the market capitalization of The9 reaches $200M, $500M and $1B. 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.
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