The9 to acquire AIGC-driven digital human SaaS platform ShenMa

The9 signed a legally binding term sheet with Shenma to purchase 51% shares of Shenma by cash and issuance of The9’s restricted shares. The9 will pay cash consideration of $1M and will issue restricted Class A ordinary shares to Shenma or its shareholders with the value of $14.3M. The value of each share will be determined by the average closing price of The9’s ADSs, 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 this schedule: when the market capitalization of The9 reaches $200M, 33,938,400 Class A ordinary shares will be released from the lock-up; when the market capitalization of The9 reaches $500M, 13,575,300 shares will be released from the lock-up, and when market capitalization of The9 reaches $1B, 6,787,800 shares will be released from the lock-up. The rest of the restricted Class A ordinary shares will be released when Shenma completes a qualified IPO and its shares owned by The9 become freely tradable in the open market. Shenma developed and operates Shenma.io, a digital human SaaS platform driven by artificial intelligence-generated content – AIGC -. The platform has 350,000 registered users, 150,000 short video scripts model library, 9,000 digital human creators and different brand customers.