SHENZHEN, China - Taoping Inc. (NASDAQ:TAOP), a provider of smart cloud services and solutions, announced today that it has been granted an additional 180 days to meet Nasdaq's minimum bid price requirement. Currently trading at $0.32, down 75.8% over the past year, the company's shares are trading near their 52-week low. According to InvestingPro analysis, the stock appears slightly undervalued at current levels. The extension, confirmed by Nasdaq on Thursday, allows the company until June 16, 2025, to ensure its ordinary share closing bid price is at least $1.00 for ten consecutive business days.
The Nasdaq Listing Rule 5810(c)(3)(A) stipulates the minimum bid price condition, which Taoping must satisfy to maintain its listing. With a current market capitalization of just $2.1 million and a debt-to-equity ratio of 0.62, the company is considering options to achieve compliance, including a potential reverse stock split, which would need to be completed at least ten business days before the June 2025 deadline.
The receipt of the extension notification does not affect the current trading of Taoping's ordinary shares on Nasdaq, where they continue to be listed under the ticker "TAOP". This extension provides the company with the opportunity to focus on its business objectives without the immediate pressure of delisting.
Taoping is known for its innovative approach to technology, offering smart cloud platform services, new media, and AI solutions. Despite market challenges, the company has achieved impressive revenue growth of 37.49% over the last twelve months. Get deeper insights into Taoping's financial health and growth prospects with InvestingPro, which offers 13 additional investment tips for this stock. It has established a significant city partner ecosystem and a portfolio of high-traffic areas for its products, integrated with its smart cloud platform and services.
The information in this article is based on a press release statement from Taoping Inc.
In other recent news, Taoping Inc. has announced its intent to acquire Shenzhen Yunti Internet of Things Co., Ltd., a move aimed at expanding its market share and revenue streams. This acquisition could significantly boost Taoping's presence in the elevator equipment and service industry. In the past year, Taoping has shown substantial revenue growth of 37.49%. However, the company operates under a significant debt burden of $9.88 million, which could impact the financing structure of the acquisition.
Yunti, a company established in 2016, provides a comprehensive smart elevator solution, which includes a SaaS platform, Tishibao, and Tishibang, China's first private market elevator Internet service platform. The proposed acquisition aligns with Taoping's strategy to integrate into the smart city product market, potentially accessing the vast Chinese elevator industry, which exceeded 494.3 billion RMB in market size in 2023.
The non-binding letter of intent suggests that Yunti's shareholders would exchange their equity for newly issued ordinary shares of Taoping. The final valuation and timeline for the acquisition will be determined following a third-party evaluation. The parties aim to finalize the deal within the next 12 months, subject to further due diligence, board approval, and regulatory clearances. As per InvestingPro's analysis, Taoping currently appears undervalued, but it should be noted that there is no assurance that the acquisition of Yunti by Taoping will be completed as proposed.
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