TAOP Signs Agreement to Acquire Majority Stake in Render Lake Tech Ltd. and Launches NFT Division
March 31 2021 - 8:00AM
Taoping Inc. (NASDAQ: TAOP, the “Company”), a provider of
internet-based smart display screens, and a new-media ecosystem
that enables targeted advertising and online retail, announces
today that it has entered into a share purchase agreement with
Genie Global Limited. (“Genie Global”) to acquire 51% equity
interest in Genie Global’s wholly owned subsidiary, Render Lake
Tech Ltd. (“Render Lake”).
Founded in Ontario, Canada in 2019, Render Lake
is a cloud infrastructure service provider committed to provide
high-performance cloud computing solutions for special effects
companies. Through its network of Trusted Partner Network
(TPN)-compliant data centers, Render Lake provides comprehensive
cloud solutions and develops cloud desktop, cloud rendering, cloud
computing, NFT (Non-Fungible Token), and cloud gaming
businesses.
At the same time, TAOP announced the
establishment of NFT Business Division and appointed Qian Wang as
Chief Investment Officer (CIO) of TAOP, director of NFT Business
Division, and general manager of Render Lake.
Mr. Qian Wang has extensive industry experience
in cloud computing services, blockchain applications and
operations, and overseas capital market operations. Before joining
TAOP, he served as co-Chief Executive Officer of Grand Shores
Technology (1647.HK), the major business of which focuses on
design, construction, and operation of crypto cloud computing
centers and development of blockchain innovation. Mr. Wang got CFA
charter and received both a Postgraduate Diploma in Financial
Markets and Portfolio Management and Bachelor’s degree in
Accounting and Finance from the University of Hong Kong.
“We are pleased to welcome Mr. Wang to TAOP’s
leadership team,” said Mr. Jianghuai Lin, the Chairman and CEO of
TAOP. “The acquisition of Render Lake is an important strategic
step for TAOP. We believe cloud desktop, cloud computing, and cloud
gaming business have explosive growth potential in the 5G era.
Also, cloud rendering and NFT can provide powerful technical
support for TAOP’s new media, smart cloud, and online education
platform businesses.”
About the Transaction: Pursuant
to the share purchase agreement, as consideration TAOP has agreed
to issue to Genie Global a total of 144,204 ordinary shares of
TAOP, calculated as $1.53 million being divided by the average
closing price of TAOP ordinary shares over the 5 trading days prior
to the execution of the share purchase agreement.
According to the share purchase agreement, the
shares are expected to be issued in four phases. The first phase
will issue 28,841 shares before March 31, 2022; the second phase
will issue 28,841 shares before September 30, 2022; the third phase
will issue 43,261 shares before March 31, 2023; the fourth phase
will issue 43,261 shares before September 30, 2023. Each issuance
of shares will be conditioned upon the satisfaction of certain
performance requirements of Render Lake as set forth in the share
purchase agreement.
The closing of the transaction is subject to a
number of conditions, including, without limitation, completion of
all respective internal approval procedures of the parties, no
material adverse impact on the assets, operation and management
team of Render Lake prior to closing, and the satisfaction or
waiver of other customary closing conditions. The parties intend to
close the transaction no later than April 30, 2021.
About Taoping Inc.
Taoping Inc. (TAOP), is a leading provider of
smart display terminals and solutions for targeted advertising and
online retails. The Company provides the integrated end-to-end
digital advertising solutions enabling customers to distribute and
manage ads on cloud-based ad display screens. Connecting owners of
Taoping screens, advertisers and consumers, it builds up a resource
sharing "Smart IoT Screen Network- Taoping App - Taoping Go
(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. 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
QiuEmail: chang_qiu@taoping.cnhttp://www.taop.com/or
Dragon Gate Investment Partners LLCTel:
+1(646)-801-2803Email: taop@dgipl.com
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