TAOP Signs LOI to Acquire Majority Ownership of Fujian Taoping IoT Technology Limited

Taoping Inc. a provider of blockchain technology and smart cloud services, announced that it has entered into a letter of intent (the “LOI”) with the shareholders of Fujian Taoping IoT Technology Limited (“Fujian Taoping”) to acquire at least 51% of the ownership of Fujian Taoping.

Pursuant to the LOI, the purchase price, to be determined by the parties after the completion of due diligence of Fujian Taoping, will be paid in the form of ordinary shares of TAOP. The LOI will be automatically terminated if no definitive agreements are entered into among the parties before December 31, 2022.

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Established in May 2017, Fujian Taoping has served over 2,000 customers so far. As of February 2022, Fujian Taoping’s self-operated and investment areas cover seven major cities in Fujian Province, including Fuzhou, Quanzhou, Zhangzhou, Nanping, Putian, Sanming, and Longyan. Currently, Fujian Taoping’s network has a total of 8,899 smart screen locations, covering more than 700 high-end residential areas, commercial centers, and office buildings. It laid a good foundation for the subsequent expansion of the smart community service in the local area.

After the closing of the acquisition, Fujian Taoping is expected to become an important part of Taoping Digital Culture East China Operation Center. While continuing to grow the current business, Fujian Taoping plans to take advantage of its existing channels to expand the business of smart charging piles, smart stations, large-screen splicing displays, and build an integrated digital service ecosystem.

“Following the acquisition of Zhenjiang Taoping’s announced last month, the proposed acquisition is expected to further strengthen our position in the new media and smart community service business in East China market,” said Mr. Jianghuai Lin, Chairman and CEO of TAOP. “We believe the acquisition would accelerate our digital service business and create value for the communities and our shareholders.”

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