Taoping Inc. (NASDAQ: TAOP), an IT service management company has revealed that it has signed a securities purchased agreement with its investors. Taoping has decided to issue an aggregate of 222,222 ordinary shares, no par value, a convertible note with a principal amount of $1,480,000, and a warrant to purchase 53,333 ordinary shares at $9.0 per share to its investor. The company will receive the gross proceeding of $2.0 million before subtracting estimated expenses.
Taoping Inc has earlier announced the 1- for 6- reverse stock split of issued ordinary shares. The reverse stock split is planned to increase the per-share trading price of the ordinary shares of the company to satisfy the $1.00 minimum bid price requirement for continued listing on the NASDAQ stock market. Taoping stocks have been garnering attention since the reverse stock split decision.
The company saw a sharp growth in its early years as it was included in the Deloitte Top 500 High-tech & Fast-growth in the Asia Pacific in 2009 and Forbes Most Promising SMEs in China list in 2011. But the past 15 years was not shown much strength of the company. Its market revenue was below $14 million earlier this year. It has a limited history of selling cloud-based products due to the ongoing pandemic.
The company disclosed that it is unable to implement a long-term business plan if it is not able to secure additional financing. TAOP is currently unable to predict its future. Investors have not paid much attention to the Taoping stock in recent years.
Shares of Taoping traded up 8.21% as it gained +0.23 at $3.03 on Friday. In the past 52-weeks of trading, this company stock has fluctuated between the low of $1.86 and a high of $15.00. It has traded up 62.90% from its 52-weeks low and traded down -79.80% from its 52-weeks high. Taoping Inc market capitalization has remained high, hitting $20.51 million at the time of writing.
Taoping has earlier launched the two new smart screen products including the 43-inch screen and the 55-inch screen. Taoping’s 43-inch has a resolution of 1080*1920 pixels and 55-inch smart screens have a resolution of 3840*2160 pixels. The body of the smart screen is mainly white and is made of glass and metal. Users will be able to manage smart screens remotely and effectively through the Taoping Smart Cloud Platform.
