The9 Signed a Definitive Share Purchase Agreement to Invest in AI-Powered Educational Technology Company

Core Viewpoint - The9 Limited has entered into a definitive share purchase agreement to acquire 19% of Wuhan Weixiang Science And Technology Co., Ltd., an AI-powered educational technology company, with an option to purchase up to 51% based on a valuation of 7 times Weixiang's audited annual profit after tax, provided the valuation exceeds US$45 million [1][3]. Group 1: The9 Limited's Investment - The9 will pay US$1.5 million in cash and issue 284,465,400 restricted Class A ordinary shares to Weixiang, equivalent to 948,218 ADSs [3]. - The release of restricted shares is contingent upon The9's market capitalization reaching specific thresholds: US$200 million, US$500 million, and US$1 billion, with corresponding shares released at each level [3]. Group 2: Weixiang's Business Model - Weixiang, founded by Mr. Xu Wang, focuses on creating a localized online school ecosystem using short videos and live streaming, leveraging platforms like TikTok and WeChat [2]. - The company has over 9 million followers and has achieved significant engagement, with its most popular teacher attracting over 300,000 simultaneous viewers in a single live stream [2]. - Weixiang employs AI technologies for content creation, live streaming, and personalized learning, enhancing productivity and reducing operational costs [2]. Group 3: Future Plans and Vision - Weixiang aims to extend high-quality education to underserved markets, particularly in remote areas, by supporting grassroots teachers through training and content creation [4]. - The company plans to develop advanced data analysis tools to optimize educational strategies and improve lesson quality [4].