Taoping Raises $1 Million in Convertible Note Sale; Stock Jumps 5%
Taoping Inc. (Nasdaq: TAOP) announced on Tuesday that it will issue a convertible promissory note to raise $1 million, sending its stock up nearly 5% to 56 cents per share.
The Shenzhen-based company, which provides cloud app technologies, said in a statement today that it will issue the note to an undisclosed investor in the principal amount of $1.04 million and warrants to purchase 160,000 shares at $1.5 per share within three years.
To cover the investor’s accounting fees, due diligence fees, monitoring and/or other transactions affiliated with the purchase and sale of the note, Taoping will issue a $40,000 discount on the note, the company said.
"This new investment is expected to give us more financial flexibility, help us expand our network to reach 1,000 cities, and accelerate the development of our new-media ecosystem,” Jianghuai Lin, the chairman and chief executive officer of Taoping, said in the statement.
The note will expire within 12 months of the issuance date and carries a 5% annual interest rate.