TAOP Signs LOI to Acquire 51% of Shenzhen Taoping New Media Co., Ltd.
January 08 2019 - 8:30AM
Taoping Inc. (NASDAQ: TAOP), a leading provider of internet-based
ad distribution and display terminal sharing systems and online
retail platform, today announced that it has entered into
a letter of intent (the “LOI”) with the shareholders of
Shenzhen Taoping New Media Co., Ltd. (“Shenzhen Taoping”) to
acquire 51% of ownership of Shenzhen Taoping.
Located in Shenzhen, China, Shenzhen Taoping is
a leading media operator in the out-of-home digital advertising
industry. Through Taoping Alliance, a nationwide advertising
resource sharing platform jointly founded with TAOP, Shenzhen
Taoping is building a “Smart IoT Terminal - Taoping Net/ App -
Taoping E-store” media ecosystem with one hundred Taoping Alliance
members, including three members overseas (Toronto, Asia, and
Singapore). Mr. Jianghuai Lin, the Chairman and CEO of TAOP,
currently owns approximately 56% of Shenzhen Taoping.
Pursuant to the LOI, the purchase price will
consist of a combination of cash and ordinary shares of TAOP, which
will be determined according to the value of the acquired ownership
interest in Shenzhen Taoping established by a mutually accepted
independent third-party appraisal. The LOI will be terminated if no
definitive agreements are entered into with six months.
“Signing this LOI is another key strategic step
for TAOP, as the proposed acquisition will enable us to enter into
a $25.5 billion out-of-home advertising market in China with
end-to-end digital marketing solutions,” said Mr. Jianghuai Lin,
the Chairman and CEO of TAOP. “We strongly believe this transaction
would bring tremendous value for our shareholders who have invested
in and supported our mission of making advertising and branding
affordable and effective for everyone.”
Except as specifically set forth in the LOI, the
LOI is not binding or enforceable and neither party has any
obligation to consummate the transaction until such time as the
parties have entered into mutually agreeable definitive agreements,
and then only subject to the terms and conditions thereof. No
assurance can be given that mutually acceptable due diligence will
be completed, a definitive agreement will be entered into, that the
appropriate governing bodies including TAOP’s board of directors
will approve such transaction, and that the proposed transaction
contemplated above will be consummated.
About Taoping Inc.
Taoping Inc. (formerly known as China
Information Technology, Inc.) NASDAQ: TAOP, is a leading provider
of internet-based ad distribution and display terminal sharing
systems and online retail platform in China. The Company provides
the integrated end-to-end digital advertising solutions enabling
customers to distribute and manage ads on the ad display terminals.
Connecting cloud-based ad terminal owners, advertisers and
consumers, it builds up a resource sharing “Smart IoT Terminal -
Taoping Net/ App – Taoping E-store” media ecosystem to ultimately
achieve the mission “our technology makes advertising and branding
affordable and effective for everyone.” 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. Without limiting the generality of the foregoing,
forward-looking statements contained in this press release include
statements regarding the Company’s and Shenzhen Taoping’ future
performance and the anticipated financial impacts of the
acquisition, the success of any business development initiatives to
be pursued by the Company or Shenzhen Taoping, the satisfaction of
the closing conditions to the acquisition, and the timing or
success of the completion of the acquisition. 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.
Iris Yan
Tel: +86-755-8370-4767
Email: IR@taoping.cn
http://www.taop.com/
or
Dragon Gate Investment Partners LLC
Tel: +1(646)-801-2803
Email: taop@dgipl.com
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