TAOP Signs LOI to Acquire Majority Ownership of Yunnan Taoping IoT Limited to Expand Southwest China Market
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 majority shareholder of Yunnan Taoping IoT Limited (“Yunnan Taoping”) to acquire additional equity interests and increase its ownership of Yunnan Taoping to no less than 51%. Currently TAOP’s variable interest entity, Taoping New Media Co., Ltd., owns about 40% of Yunnan Taoping.
Established in July 2017, Yunnan Taoping has become a leading and influential new media platform in Yunnan province after four years of rapid development. As a TAOP Alliance member, it provides customized intelligent marketing and Taoping e-Store services for brand customers in various industries. After the closing of the acquisition, Yunnan Taoping is expected to become the Southwest Operation Center of the Company to expand digital businesses in cloud application services and new media in the region.
Pursuant to the LOI, the purchase price, to be determined by the two 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 between the parties before March 31, 2022. There is no guarantee that the transaction contemplated under the LOI will be consummated as planned or at all.
“The proposed acquisition is expected to strengthen our leading position in the new-media industry in Southwest China and add new revenue streams to TAOP,” said Mr. Jianghuai Lin, Chairman and CEO of TAOP, “Since its establishment in 2017, Taoping Alliance has grown to an influential nationwide advertising network with over 200 city partners. As more and more cities achieve profitability, we will continue to acquire good performing companies in Taoping network to solidify the relationship and enhance our competitiveness in the new-media and smart cloud services industry.”
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.