NCTY - The9 Signed a Legally Binding Term Sheet with a Leading AI SaaS Legal Service Platform 365LAWHELP.COM | Benzinga
SHANGHAI, Feb. 21, 2024 /PRNewswire/ -- The9 Limited (NASDAQ:NCTY) ("The9"), an established Internet company, today announced that it signed a legally binding term sheet (the "Term Sheet") with Zhejiang Fazhidao Information Technology Co., Ltd. ("Fazhidao") to purchase 19% shares of Fazhidao by cash and issuance of The9's restricted shares. The9 is also granted a purchase option to purchase up to 51% of the total shares of Fazhidao, based on a valuation calculated as 7 times of Fazhidao's audited annual profit after tax, provided that such valuation should be higher than a pre-agreed valuation.
Established in 2019, Fazhidao owns and operates 365LAWHELP.COM and mobile app FaBaoWang, a leading artificial intelligence (AI) Software as a service (SaaS) legal service platform in China. It has more than 120,000 cumulative paid subscribers from large companies to micro companies and individuals. The gross sales were over US$50 million in 2023. 365LAWHELP.COM has provided more than 100 million times services to customers cumulatively. It has created large-scale AI legal models based on 13 billion model parameters, collecting historical legal service interactive data with the dynamic growth of more than 100,000 new consultation conversations data used for machine learning every day. Daily service data feeds back to the large-scale AI legal model at the same time, continuously improving the service quality.
365LAWHELP.COM develops AI legal Generative Pre-trained Transformer (Gpt) which provides the legal advice that complies with the laws and regulations based the platform's real-time data. Based on database cases and AI model calculations, precaution measures and potential solutions are provided. Also future event development is predicted for customers to plan in advance develop forecasts and feasibility plans. The platform also provides the highest level of confidentiality for all customers' information. The services offered include professional online legal consultation, one-stop enterprise-specific compliance services, tax consulting services, contract customization and review, electronic signatures, contract template download, legal letter submission, litigation document drafting and risk management and control solutions for enterprises' modules including human resources, finance, administration and intellectual property.
Pursuant to the Term Sheet, The9 will pay cash consideration of US$1 million and will issue restricted Class A ordinary shares to Fazhidao ...