TAOP Signs LOI to Acquire 51% of Shenzhen Taoping New Media Co., Ltd.
SHENZHEN, China, Jan. 08, 2019 (GLOBE NEWSWIRE) -- 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:
Dragon Gate Investment Partners LLC