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Taoping Inc. Form 6-K: $1.3M Convertible Note Deal with Streeterville Capital

$TAOP
Form 6-K
Filed on: 2025-01-14
Source
Taoping Inc. Form 6-K: $1.3M Convertible Note Deal with Streeterville Capital

Here are the key insights and information extracted from the provided section of the financial report for Taoping Inc.:

  1. Filing Information:
  • Type: Form 6-K
  • Commission File Number: 001-35722
  • Date of Report: January 14, 2025
  • Period Covered: January 2025
  1. Company Information:
  • Name: Taoping Inc.
  • Address: 21st Floor, Everbright Bank Building, Zhuzilin, Futian District, Shenzhen, Guangdong, 518040, People’s Republic of China.
  1. Securities Purchase Agreement:
  • Date of Agreement: January 13, 2025
  • Investor: Streeterville Capital, LLC
  • Transaction: Issued an unsecured convertible promissory note.
  • Principal Amount: $1,311,000 (includes an original issue discount of $96,000 and transaction costs of $15,000).
  1. Terms of the Convertible Note:
  • Maturity: 12 months
  • Interest Rate: 7% per annum, with potential increases upon certain Trigger Events.
  • Trigger Events: If a Trigger Event occurs and is not cured within five trading days, it becomes an event of default, and interest could increase to a maximum of 22% per annum.
  • Conversion Price: Fixed at $3.00 per share, with conditions for redemption at a maximum of $300,000 per month.
  1. Obligations and Restrictions:
  • The Company must obtain Investor's consent for significant transactions (mergers, asset dispositions, etc.).
  • Late Fees: 2% of the Conversion Share Value with a minimum of $500 per day if shares are not delivered timely upon conversion or redemption.
  1. Closing of the Transaction:
  • The transaction closed on January 13, 2025, after all conditions were met.
  • A prospectus supplement was filed to register up to 3,602,589 ordinary shares issuable upon the conversion of the Convertible Note.
  1. Documents Incorporated by Reference:
  • The Form 6-K is incorporated into previously filed registration statements (Form S-8 and Form F-3).
  1. Legal Opinion:
  • An opinion regarding the validity of the shares to be issued has been filed as part of the report.

This summary provides a concise overview of the financial transaction and obligations of Taoping Inc., highlighting its recent activities related to capital raising through convertible debt.