Taoping Inc.’s Chinese subsidiary acquires iASPEC Technology Group Co. Moreover, TAOP relocated its global corporate headquarters (HQs) from Shenzhen to Hong Kong as part of the execution of its global growth strategy.
Taoping Inc. (TAOP) shares closed on a lower side on Friday following the company’s announcement of corporate restructuring on 20 September 2021. The Chinese blockchain and cloud service provider has decided to move its corporate HQs to Hong Kong.
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Taoping is working on corporate modernization and the shifting of headquarters is part of its global growth strategy. With this, TAOP’s executive offices will now be located in Unit 3102, 31/F, Citicorp Centre, 18 Whitefield Road, Hong Kong. While the offices in Shenzhen will operate as regional headquarters in Mainland China.
The CEO of Taoping, Jianghuai Lin stated that the suspension of variable interest entity (VIE) structure in China will enhance TAOP’s corporate governance. Moreover, it will also improve the transparency for Taoping shareholders. This decision will take the company one step ahead to streamline its international business development, service delivery, and client communication.
In addition, the company also announced that its wholly-owned Chinese subsidiary, Information Security Technology (IST), has acquired iASPEC Technology Group Co. IST exercised the option to acquire 100% equity interests iASPEC.
The acquisition dates back to July 1, 2007, when iASPEC’s shareholders and IST entered into a purchase option agreement. It was agreed that IST will have an irrevocable option to purchase, from time to time, all the stake in iASPEC. The deal comes at an aggregate price of $1,800,000. In regard, iASPEC sold its 612,245 unregistered ordinary shares.
Therefore, Taoping along with IST exercised the purchase option. IST completed the equity transfer agreement on September 18, 2021. The following agreement was in consideration with iASPEC and iASPEC’s sole shareholder, Mr. Lin.
The acquisition of iASPEC is part of the expansion plan of Taoping. Recently, the company has been involved in various acquisition and merger agreements. TAOP has signed another purchase agreement with Hoover Investment Group. Hoover is a blockchain investor and focuses on digital asset supply chain business in Hong Kong.
The purchase agreement with Hoover will help TAOP to settle its ground in Hong Kong. As per the agreement, Taoping will purchase 1,220 NVIDIA CMP 170HX mining cards for almost $4 million. The company plans to continue its crypto investment and acquire more crypto mining machines. This will enhance TAOP’s overall computing power, increasing its presence in the cryptocurrency market.
Taoping Inc. (TAOP) believes that investing and expansion in blockchain projects will add considerable value to the Company’s shareholders.