Luokung Technology Corp (NASDAQ:LKCO) is trading with mild gains in the pre-market session after soared about 26.55% in the previous trading session.
Major Trigger:
Luokung Announces Removal from Executive Order List, Favorable Conclusion of Department of Defense Designation Matter
Key Highlights:
- announced today that the U.S. Department of Defense (“DoD”) has removed the Company’s designation as a Communist Chinese Military Company. In addition, as a result of the omission of the Company from Executive Order 14032, which amends and supersedes Executive Order 13959 in imposing restrictions on trading shares of certain Chinese companies, Luokung and its shareholders are no longer subject to any restrictions pursuant to Executive Order 13959, as amended.
- DoD confirmed the foregoing to Luokung and to the U.S. District Court for the District of Columbia. In light of the foregoing, Luokung and the government Defendants have filed a joint stipulation to have the Company’s lawsuit challenging the designation voluntarily dismissed, which will bring the lawsuit to a close.
- Luokung has regained eligibility for inclusion in the FTSE GEIS (Micro Cap) index, and expects that it will be re-included in such index upon the open of the stock market on June 21, 2021.
Key Quote:
Mr. Xuesong Song, Chairman and CEO, stated, “We are pleased with this favorable outcome for Luokung and its shareholders. In the coming weeks, we expect to provide additional updates on our operations. We feel that the market potential for our spatial-temporal technology will only continue to grow due to the expansion of autonomous applications. Finally, our recent closing of the eMapgo Technologies acquisition is indicative of our belief in the market potential of combining Luokung’s core technology with eMapgo’s leading position in the Advanced Driving Assistance System (ADAS) and autonomous driving industries. We are very relieved to put this challenge behind us and plan to continue to focus on building value for all of our shareholders.”
Market Reaction
As of 89:02, LKCO stock jumped 1% to $2.26 with 390K shares traded hands.
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