TAOP Dissolves the VIE Structure and Moves Corporate Headquarters to Hong Kong
September 20 2021 - 8:00AM
Taoping Inc. (NASDAQ: TAOP, the “Company” or “TAOP”), a provider of
blockchain technology and smart cloud services, today announced
that the Company’s wholly owned Chinese subsidiary, Information
Security Technology (China) Co., Ltd. ( “IST”), has exercised the
option to acquire 100% equity interests in iASPEC Technology Group
Co., Ltd., a variable interest entity (“VIE”) of the Company
(“iASPEC”) from iASPEC’s sole shareholder, Mr. Jianghuai Lin (“Mr.
Lin”), the Chief Executive Officer and Chairman of the Company.
On July 1, 2007, iASPEC, iASPEC’s shareholders
and IST entered into a purchase option agreement (the “Option
Agreement”), pursuant to which iASPEC’s shareholders granted IST or
its designee(s) an exclusive, irrevocable option to purchase, from
time to time, all or a part of equity interests in iASPEC at an
exercise price of $1,800,000, in the aggregate.
On September 18, 2021, TAOP and IST exercised
the purchase option and entered into an equity transfer agreement
with iASPEC and iASPEC’s sole shareholder, Mr. Lin, under which Mr.
Lin agreed to sell and transfer to IST all of the equity interest
in and any and all rights and benefits relating thereto of iASPEC
in exchange for 612,245 unregistered ordinary shares, no par value
of the Company (the “Ordinary Shares”), which is equal to
$1,800,000 divided by the volume-weighted average closing price of
Ordinary Shares for the consecutive five (5) trading days
immediately prior to September 18, 2021. The parties agreed that
the closing of the transactions contemplated by the equity transfer
agreement would take place on the date when the parties complete
the applicable PRC government registration(s) to effectuate the
transfer of the equity interests.
In addition, the Company relocated its global
corporate headquarters from Shenzhen, China to Hong
Kong as part of the implementation of its global growth
strategy. As a result, the executive offices of the Company
are now located at Unit 3102, 31/F, Citicorp Centre, 18 Whitefield
Road, Hong Kong. Shenzhen, China will serve as TAOP's regional
headquarters in Mainland China.
“We believe the dissolution of VIE structure in
China will improve corporate governance and transparency for TAOP
shareholders. The relocation of our global corporate headquarters
to Hong Kong is an important milestone for TAOP to streamline our
international business development, client communication, and
service delivery,” said Mr. Jianghuai Lin, Chairman and CEO of
TAOP.
About Taoping Inc.
Taoping Inc. (TAOP), is a leading blockchain
technology and smart cloud service provider. The Company is
dedicated to the research and application of blockchain technology
and digital assets. With multiple cloud data center deployed
overseas, the Company continues to improve computing power and
create value for the encrypted digital currency industry. Relying
on its self-developed smart cloud platform, TAOP provides solutions
and cloud services to industries such as new media and artificial
intelligence. 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
Taoping Inc BVI (NASDAQ:TAOP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Taoping Inc BVI (NASDAQ:TAOP)
Historical Stock Chart
From Apr 2023 to Apr 2024