Taoping regains compliance with Nasdaq minimum bid price rule

SHENZHEN, China - Taoping Inc. (NASDAQ:TAOP) has regained compliance with Nasdaq’s minimum bid price requirement, the company announced Monday. The stock, currently trading at $4.02, has experienced significant volatility this year, with a year-to-date decline of 68.3% according to InvestingPro data.

The cloud platform services provider received notification from Nasdaq on June 13 confirming it had cured its bid price deficiency and now complies with Listing Rule 5550(a)(2). As a result, Taoping’s shares will continue to trade uninterrupted on the Nasdaq exchange under the ticker "TAOP." With a market capitalization of just $3.57 million and a debt-to-equity ratio of 0.61, InvestingPro analysis indicates the company faces significant financial challenges.

The compliance issue is now considered resolved, according to the company’s statement based on a press release.

Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of $1.00 per share. Companies that fall below this threshold for a specified period typically receive deficiency notices and must regain compliance within a set timeframe to avoid potential delisting.

Taoping describes itself as a provider of smart cloud platform services and solutions. The Shenzhen-based company has been listed on Nasdaq and operates in the technology sector with a focus on cloud services, new media, and artificial intelligence solutions.

The company’s announcement did not provide specific details about how it addressed the bid price deficiency or what measures were implemented to regain compliance with Nasdaq’s requirements.

In other recent news, Taoping Inc. has announced a one-for-thirty reverse stock split, a decision made by its board of directors to comply with Nasdaq’s listing requirements. This move is designed to increase the per-share trading price to meet the Nasdaq’s $1.00 minimum bid price rule. As a result of the reverse split, Taoping will have approximately 0.89 million ordinary shares outstanding, excluding shares issuable under existing options and convertible notes. Shareholders with shares in brokerage accounts will experience the consolidation automatically, while those holding share certificates will receive instructions from the company’s transfer agent, TranShare Corporation, on how to exchange their certificates. The reverse stock split will also proportionately adjust outstanding options, warrants, and other rights to purchase ordinary shares. No fractional shares will be issued; instead, any fractional shares resulting from the split will be rounded up to the nearest whole share. Importantly, the total number of authorized ordinary shares for Taoping will remain unchanged. This strategic decision is based on a press release and is intended solely to meet listing requirements without altering the company’s total authorized shares.

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