Benzinga | Jul 28, 2021 08:00AM EDT

TAOP Signs LOI To Acquire 51% If Zhenjiang Taoping IoT Technology Limited

Taoping Inc. (NASDAQ:TAOP, the &quot, Company&quot, or &quot, TAOP&quot, ))))), 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 51% of the ownership of Zhenjiang Taoping.



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."