Taoping Inc's (NASDAQ: TAOP) stock price is rallying premarket after the company entered into a letter of intent with Zhenjiang Taoping IoT Technology Limited shareholders to acquire no less than 51% of the firm.
Zhenjiang Taoping is a new media platform in Zhenjiang, reaching average daily viewership traffic of more than 250,000.
“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,” stated Taoping.
Once all of the due diligence is completed, the purchase price, which was not disclosed, will be paid in the form of ordinary shares of TAOP. However, the LOI will be terminated if no agreements are entered into before December 31.
“We believe this transaction would bring value for our shareholders and optimize TAOP’s business structure,” stated Jianghuai Lin, Chairman and CEO of TAOP.
Taoping's share price is up at $3.70 premarket, rising 19.74% from Tuesday's close.
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