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Taoping faces Nasdaq delisting over share price

EditorNatashya Angelica
Published 06/24/2024, 12:47 PM

SHENZHEN, China - Taoping Inc. (NASDAQ:TAOP), a provider of smart cloud services and solutions, has been notified by Nasdaq of non-compliance with its minimum bid price rule. The notification, received on June 21, 2024, indicates that the company's share price has been below the required $1.00 threshold for 30 consecutive business days.

The rule in question, Nasdaq Listing Rule 5550(a)(2), mandates that listed companies maintain a minimum bid price of at least one dollar per share. Taoping's failure to meet this requirement was observed from May 6, 2024, through June 20, 2024. Despite this setback, the notification does not immediately affect the listing of Taoping's ordinary shares, which will continue to trade on the Nasdaq.

To regain compliance, Taoping has been granted a 180-day period, ending on December 18, 2024. If during this period the company's shares reach and maintain a closing bid price of $1.00 or more for at least ten consecutive business days, Nasdaq will confirm compliance and close the matter. Taoping may consider a reverse stock split before ten business days prior to December 18, 2024, as a measure to address the issue.

Should Taoping fail to comply by the deadline, it may be eligible for an additional grace period of 180 days, provided it meets other initial listing standards for The Nasdaq Capital Market, except for the bid price requirement. The company would need to communicate its intention to cure the deficiency, potentially through a reverse stock split, to Nasdaq.

The company has expressed its intention to monitor its share price closely and explore options to regain compliance with Nasdaq's minimum bid price requirement. This announcement is based on a press release statement from Taoping Inc.

In other recent news, Taoping Inc. reported a substantial 53% year-over-year increase in contract revenue for the first quarter of 2024, reaching approximately $8.3 million. This growth was primarily driven by increased demand for the company's Smart City and AI-related products. Taoping also revealed a 25% increase in its contract revenue for April 2024, attributing this boost to the rising demand for its AI-based products, particularly its Smart City solutions.

The company has recently unveiled its upgraded AI-powered smart terminal, designed to enhance user experiences and optimize advertising efficacy. This development is part of Taoping's broader cloud strategy and is expected to contribute to the company's long-term success and shareholder value.

The company's CEO, Mr. Lin Jianghuai, expressed optimism about the sustained growth momentum, citing increasing demand, rebounding customer confidence, and a resurgence in infrastructure investments as key factors.

These are the recent developments in Taoping, a company that continues to strategically focus on AI and cloud-based offerings, aiming to boost efficiency, enhance customer interactions, and provide a better return on investment.

InvestingPro Insights

As Taoping Inc. (NASDAQ:TAOP) faces the challenge of meeting Nasdaq's minimum bid price requirement, several metrics and InvestingPro Tips provide a more profound insight into the company's financial health and stock performance.

Taoping operates with a significant debt burden and has been trading at a low Price / Book multiple, which stands at 0.26 as of the last twelve months ending Q4 2023. This is indicative of the market valuing the company's assets at a discount relative to its equity, which can be a sign of investor skepticism about the company’s prospects or valuation of its assets.

The company has also been quickly burning through cash, which is a concern for its operational sustainability. Despite a notable revenue growth of 59.43% in the same period, Taoping's share price has fallen significantly, trading near its 52-week low with a price that's only 7.11% of the 52-week high.

Moreover, with a market capitalization of just 3.28 million USD, the company's size and liquidity could be a factor in its high price volatility and the significant price declines over various time frames, including a 90.39% drop in the 1-year price total return as of mid-2024.

Investors looking for more comprehensive analysis and additional insights can find them in the InvestingPro platform, which lists 14 InvestingPro Tips for Taoping Inc., providing a deeper understanding of the company's financial situation and market performance. For those considering a subscription, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a valuable resource for informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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