The9 Limited (Nasdaq: NCTY) (“The9”), an established Internet company, today announced that it signed a legally binding term sheet on a CAD4 million investment in Skychain Technologies Inc. (“Skychain”), a company listed in TSX Venture Exchange in Canada. The purpose of the investment is for the construction and operation of a 12 MW cryptocurrency mining facility located in Birtle, Manitoba, Canada. The9 plans to deploy its cryptocurrency mining machines in this mining facility upon completion of the construction.
According to the term sheet, the investment consists of a convertible note of CAD2 million, which will mature in four years and can be extended for an additional one year at the discretion of The9, and a private placement of CAD2 million (the “Private Placement”). Each unit of the Private Placement consists of one common share and one share purchase warrant that entitles The9 to purchase an additional common share of Skychain for an exercise term of three years.
The completion of the transaction is expected to be within one month, subject to due diligence and customary closing conditions.
The9 is also actively seeking for worldwide mining facilities with low electricity cost and in compliance with local rules and regulations, for the deployment of The9’s cryptocurrency mining machines.