AirNet Technology (ANTE) to Issue Shares in Exchange for Servers for Mining Cryptocurrencies

February 5, 2021 7:04 AM EST

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AirNet Technology Inc., formerly known as AirMedia Group Inc. ("AirNet" or the "Company") (Nasdaq: ANTE), an in-flight solution provider on connectivity, entertainment, and digital multimedia in China, today announced that on February 4, 2021, it has entered into an investment agreement (the "Agreement") with Northern Shore Group Ltd. ("Northern Shore"), an unaffiliated party of the Company. Pursuant to the Agreement, the Company has agreed to issue 28,412,806 ordinary shares with a par value of US$0.001 per share (each a "Share"), or approximately 19 % of the Company's currently outstanding Shares, to Northern Shore, in exchange for the delivery and transfer from Northern Shore to the Company of either 401 A10 Pro or 1,200 588/580-8 computer servers specifically designed for mining cryptocurrencies depending upon availability prior to the closing date. The computer servers are valued at US$ 5,540,497.19, representing a per Share consideration of US$0.195, or US$1.95 per American depositary share of the Company (each representing ten Shares). The per ADS consideration represents a 20% discount to the average closing price of the Company's ADSs over the 20-trading day period ended on February 2, 2021 Eastern Time, two trading days prior to the date on which the Agreement was signed.

Mr. Herman Guo, the Chairman and CEO of the Company, commented, "Upon completion of our previous issuance of new shares, our initial attempt in mining of cryptocurrencies has seen a great success and drawn a great attention from new investors, which further amplify the Company's determination to expand its operation in mining of cryptocurrencies. The Company further determines to direct its available resources to extend its knowledge base in cryptocurrencies and to ensure a continuous success in its operations to mine cryptocurrencies."

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