Benzinga | Aug 6, 2021 08:01AM EDT

TAOP Signs LOI To Acquire Majority Ownership Of Yunnan Taoping IoT 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 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."