TAOP Signs LOI to Acquire 51% of Zhenjiang Taoping IoT Technology Limited
Taoping Inc. (NASDAQ: TAOP) has signed a letter of intent to acquire at least 51% of Zhenjiang Taoping IoT Technology Limited. This strategic move aims to enhance TAOP's East China expansion project, leveraging Zhenjiang Taoping's successful new media platform, which boasts over 250,000 daily viewers. The acquisition price will be determined post-due diligence and will be settled in ordinary shares of TAOP. The LOI will lapse if no definitive agreement is reached by December 31, 2021.
- Strategic acquisition to accelerate East China expansion.
- Access to Zhenjiang Taoping's established media platform for enhanced marketing services.
- Acquisition price contingent on due diligence may create uncertainty.
- Potential dilution of current shareholders' equity due to payment in ordinary shares.
SHENZHEN, July 28, 2021 (GLOBE NEWSWIRE) -- Taoping Inc. (NASDAQ: TAOP, the “Company” or “TAOP”), a provider of blockchain technology and smart cloud services, today announced that it has entered into a letter of intent (the “LOI”) with the shareholders of Zhenjiang Taoping IoT Technology Limited (“Zhenjiang Taoping”) to acquire not less than
Established in June 2018, Zhenjiang Taoping has become a leading and influential new media platform in Zhenjiang after more than three years of rapid development. With Taoping smart screens in commercial centers, office buildings, and residential areas, Zhenjiang Taoping has reached average daily viewership traffic of more than 250,000. As a TAOP Alliance member, it provides customized intelligent marketing services for brand customers in various industries.
On June 29, 2021, the Company entered into an investment agreement with Zhenjiang Economic and Technological Development Zone (“ZETDZ”) for TAOP’s East China expansion project. After the closing of the acquisition, Zhenjiang Taoping is expected to become an important part of Taoping Digital Culture East China Operation Center to expand digital businesses in cloud application services and new media in East China.
Pursuant to the LOI, the purchase price, to be determined by the parties after the completion of due diligence, will be paid in the form of ordinary shares of TAOP. The LOI will be terminated if no definitive agreements are entered into among the parties before December 31, 2021.
“Signing this LOI is another key strategic step for TAOP, as the proposed acquisition is expected to accelerate our East China expansion project,” said Mr. Jianghuai Lin, Chairman and CEO of TAOP, “We believe this transaction would bring value for our shareholders and optimize TAOP’s business structure.”
About Taoping Inc.
Taoping Inc. (TAOP) is an integrated group of technology and financial companies with business in Mainland China, Hong Kong, and other overseas countries. Relying on its unique strengths in cloud technology and chip supply chain, TAOP provides solutions and cloud services to industries such as film and television production, education, new media, artificial intelligence and asset management. The Company is dedicated to the research and application of blockchain technology as well as investment and management of financial assets at home and abroad. To learn more, please visit http://www.taop.com/.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of Taoping Inc., and its subsidiaries and other consolidated entities. All statements, other than statements of historical fact included herein, are "forward-looking statements" in nature within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, often identified by the use of forward-looking terminologies such as "believes", "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company and its subsidiaries and other consolidated entities or persons acting on their behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For further information, please contact:
Taoping Inc.
Chang Qiu
Email: chang_qiu@taoping.cn
http://www.taop.com/
or
Dragon Gate Investment Partners LLC
Tel: +1(646)-801-2803
Email: taop@dgipl.com
FAQ
What is the purpose of Taoping's acquisition of Zhenjiang Taoping?
When is the deadline for finalizing the acquisition of Zhenjiang Taoping?
How will the acquisition price be determined for Zhenjiang Taoping?
What impact will the acquisition have on Taoping's shareholders?
