Shares of Taoping Inc (NASDAQ: TAOP) are rallying on Wednesday after it was announced that they have entered into a share purchase agreement with Genie Global Limited to acquire a 51% stake in their wholly-owned subsidiary, Render Lake Tech Ltd.
Render Lake is a cloud infrastructure service provider founded in Ontario, Canada, in 2019. They provide comprehensive cloud solutions and develop cloud desktop, cloud rendering, cloud computing, NFT (Non-Fungible Token), and cloud gaming businesses.
The transaction will see Taoping issue Genie Global a total of 144,204 ordinary shares of TAOP, calculated as $1.53 million.
Taoping also announced an NFT Business Division, appointing Qian Wang as Chief Investment Officer of TAOP, director of NFT Business Division, and Render Lake's general manager.
“We are pleased to welcome Mr Wang to TAOP’s leadership team,” said Jianghuai Lin, the Chairman and CEO of TAOP.
“The acquisition of Render Lake is an important strategic step for TAOP. We believe cloud desktop, cloud computing, and cloud gaming business have explosive growth potential in the 5G era. Also, cloud rendering and NFT can provide powerful technical support for TAOP’s new media, smart cloud, and online education platform businesses,” added Lin.
Taoping shares have gained 32.41% premarket, priced at $13.32.
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