Nine City announces subsidiary Red5 to issue common shares to Oriental Pearl Group

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Beijing time October 22 Morning News, the Nineth City (NASDAQ:NCTY) announced today that the company has reached a non-binding terms and conditions, which may be from the Nineth city's subsidiary Red5 UBM to Shanghai Oriental Pearl Cultural Development Co., Ltd. (hereinafter referred to as "pearl culture" ) The issuance of common shares and the Red5 UBM of a particular shareholder may sell common shares to the pearl culture, with a total investment of USD 23.9457 million.

Red5 UBM developed the large multiplayer online game "Fire Waterfall" (Firefall) is valued at $100 million.

After the deal is completed, the pearl culture will become a minority shareholder holding a 20.01% stake in Red5 UBM, while Red5 UBM will remain the Nineth City subsidiary. Pearl Culture is a wholly-owned subsidiary of Shanghai Oriental Pearl (Group) Co., Ltd. (sh:600832), the latter is a Chinese listed company, mainly engaged in Chinese culture and entertainment related activities.

The transaction is subject to due diligence and other related work, and the parties do not guarantee that the final investment document will be reached or that the transaction will be completed.