Friday, Chinese online game operator The9 Limited (NCTY) said its Board approved a buyback of up to US$50 million of its American Depositary Shares, each of which represents one share of The9's ordinary shares.
The company will buy the shares in the open market and expects to fund the purchases from existing cash reserves.
Jun Zhu, Chairman and Chief Executive Officer of The9 said, "We think that the current shares price level does not reflect our company's fair value and potential. We believe this share repurchase program is a good investment opportunity at the prevailing price level,''
The9's business develops games for the Chinese online game market. The9 directly or through affiliates operates licensed MMORPGs, consisting of MU, Blizzard Entertainment's World of Warcraft, Soul of The Ultimate Nation Granado Espada, and its first proprietary MMORPG, Joyful Journey West, in mainland China. In addition, The9 is also developing various proprietary games, including Warriors of Fate Online and others.
NCTY closed Thursday's regular trading session at $16.59.
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