淘屏美股招股说明书(2023-08-30版)

424B31form424b3.htm FiledpursuanttoRule424(b)(3)RegistrationNo.333-274153 PROSPECTUS TAOPINGINC. Upto20,043,394OrdinaryShares Thisprospectusrelatestotheofferandresale,fromtimetotime,bythesellingshareholderidentifiedinthisprospectus(the“SellingShareholder”)ofupto20,043,394ordinaryshares,noparvalueofTaopingInc.(the“OrdinaryShares”).Throughoutthisprospectus,unlessthecontextindicatesotherwise,referencesto“Taoping”or“theCompany”refertoTaopingInc.,aBritishVirginIslandsholdingcompanyandreferencesto“we,”“us,”“our”or“ourcompany”aretoTaopinganditsconsolidatedsubsidiaries. OnJuly17,2023,Taopingenteredintoastandbyequitypurchaseagreement(the“PrivateSEPA”)withShanjingCapitalGroupCo.,Ltd,aBritishVirginIslandsbusinesscompany(the“Investor”),pursuanttowhichTopingmay,atitssolediscretion,electtoissueandselltotheInvestororitsdesignee,fromtimetotimeafterthedateofthisprospectus,upto$10millionofOrdinaryShares.ConcurrentlywiththeexecutionofthePrivateSEPA,Taopingissued43,394OrdinaryShares(the“PrivateCommitmentFeeShares”)totheSellingShareholder,whoistheInvestor’sdesigneeandsoledirectorandsoleshareholderoftheInvestor,asconsiderationfortheInvestor’sirrevocablecommitmenttopurchaseupto$10millionofOrdinarySharesatTaoping’selectionpursuanttothePrivateSEPA.InconnectionwiththePrivateSEPA,weareregisteringherein(i)upto20,000,000OrdinarySharesthattheCompanymayselltotheSellingShareholder,fromtimetotimeafterthedateofthisprospectus,initssolediscretion,pursuanttothePrivateSEPA,and(ii)43,394PrivateCommitmentFeeShares.Pleasesee“SellingShareholder”foradditionalinformationregardingtheSellingShareholder. WearenotsellinganyOrdinarySharesunderthisprospectusandwillnotreceiveanyoftheproceedsfromanyresaleofOrdinarySharesbytheSellingShareholderpursuanttothisprospectus.However,wemayreceiveupto$10millioninaggregategrossproceedsfromsalesoftheOrdinaryShares,ifany,totheSellingShareholderthatTaopingmay,initssolediscretion,electtomake,fromtimetotimeafterthedateofthisprospectusandaftersatisfactionofotherconditionsinthePrivateSEPA,basedonmarketpricesoftheOrdinarySharespriortothetimeTaopingelectstomakesuchsalestotheSellingShareholder. Wewillbearallcosts,expensesandfeesinconnectionwiththeregistrationoftheOrdinarySharesundertheSecuritiesActof1933,asamended(the“SecuritiesAct”).TheSellingShareholderwillbearallcommissionsanddiscounts,ifany,attributabletoitsresalesofOrdinaryShares.However,ourregistrationoftheOrdinarySharescoveredbythisprospectusdoesnotguaranteethattheSellingShareholderwillofferorsellanyoralloftheOrdinaryShares.TheSellingShareholdermayoffer,sellordistributealloraportionoftheirOrdinarySharespubliclyorthroughprivatetransactionsatprevailingmarketpricesoratnegotiatedprices.WeprovidemoreinformationabouthowtheSellingShareholdermaysellorotherwisedisposetheOrdinarySharesinthesectionentitled“PlanofDistribution.”TheSellingShareholderisan“underwriter”withinthemeaningofSection2(a)(11)oftheSecuritiesAct. TheOrdinarySharesarelistedontheNASDAQCapitalMarketunderthesymbol“TAOP.”OnAugust29,2023,theclosingsalepriceoftheOrdinarySharewas$2.44. INVESTORSPURCHASINGSECURITIESINTHISOFFERINGAREPURCHASINGSECURITIESOFTAOPING,THEBRITISHVIRGINISLANDSHOLDINGCOMPANYRATHERTHANSECURITIESOFTAOPING’SSUBSIDIARIESTHATHAVESUBSTANTIVEBUSINESSOPERATIONSINCHINA. TaopingisnotanoperatingChinesecompanybutratheraholdingcompanyincorporatedintheBritishVirginIslands.BecauseTaopinghasnobusinessoperationsofitsown,weconductourbusinessthroughTaoping’soperatingsubsidiariesinChina(whichisalsoreferredtoas“PRC”).ThisstructureinvolvesuniqueriskstoinvestorsandyoumayneverdirectlyholdequityinterestsinTaoping’soperatingentities.YouarespecificallycautionedthattherearesignificantlegalandoperationalrisksassociatedwithbeingbasedinorhavingthemajorityofoperationsinChina,includingthatchangesinthelegal,politicalandeconomicpoliciesoftheChinesegovernment,therelationsbetweenChinaandtheUnitedStates,orChineseorUnitedStatesregulations,maymateriallyandadverselyaffectourbusiness,financialcondition,resultsofoperationsandthemarketpriceofTaoping’ssecurities.Moreover,theChinesegovernmentmayexercisesignificantoversightanddiscretionovertheconductofourbusinessandmayinterveneinorinfluenceouroperationsatanytime,whichcouldresultinamaterialchangeinouroperationsand/orthevalueofthesecuritiesbeingregisteredforsaleorcouldsignificantlylimitorcompletelyhinderTaoping’sabilitytoofferorcontinuetooffersecuritiestoinvestorsandcausethevalueofsuchsecuritiestosignificantlydeclineorbeworthless.AlthoughwebelieveouroperatingstructureislegalandpermissibleundertheChineselawandregulationscurrentlyineffect,Chineseregulatoryauthoritiescouldtakeadifferentpositionontheinterpretationandenforcementoflawsandregulationsanddisallowourholdingcompanystructure,whichwouldlikelyresultinamaterialadversechangeinouroperationsand/orthevalueofTaoping’ssecuritiesbeingoffered,includingthatitcouldcausethevalueoftheOrdinarySharestosignificantlydeclineorbecomeworthless.See“Item3.KeyInformation—D.RiskFactors—RisksRelatingtoDoingBusinessinChina”inourannualreportonForm20-FfortheyearendedDece