Luokung Announces Favorable Ruling Granting Preliminary Injunction

Rhea-AI Summary

Luokung Technology Corp. (NASDAQ: LKCO) announced that the United States District Court for the District of Columbia granted its motion for a preliminary injunction. This ruling prevents the Department of Defense and other government officials from enforcing restrictions on Luokung's operations related to its designation as a Community Chinese military company. As a result, Luokung is optimistic about its future and has contacted Nasdaq to reconsider its previous delisting decision. The company aims to reassure shareholders regarding its operational capabilities.

Positive

• Court ruling grants Luokung a preliminary injunction against restrictions.
• Company can continue operations without government enforcement of designation as a Community Chinese military company.
• Positive outlook expressed by CEO for future business prospects.

Negative

• Uncertainty remains regarding Nasdaq's response to the delisting determination.

BEIJING, May 6, 2021 /PRNewswire/ -- Luokung Technology Corp. (NASDAQ: LKCO) ("Luokung" or the "Company"), a leading interactive location-based services and big data processing technology company based in China, today announced that Luokung's previously announced motion for a preliminary injunction was granted by the United States District Court for the District of Columbia (the "Court").  In its ruling, the Court explained that it was preliminarily enjoining "the prohibitions against Luokung in full." As a result of the ruling, the Department of Defense and other government defendants are enjoined from implementing or enforcing the designation of Luokung as a Community Chinese military company, and the resulting restrictions pursuant to Executive Order 13959.

A full copy of the Court's opinion can be reviewed at the following website: https://ecf.dcd.uscourts.gov/cgi-bin/Opinions.pl.

Mr. Xuesong Song, Chairman and CEO, stated, "We wholly agree with the Court's ruling, and are pleased to move forward. We are pleased to see a fair and just decision rendered for all shareholders."

Upon receipt of the Court's decision, Luokung contacted Nasdaq senior management to inform it of the action taken by the Court and requested that Nasdaq reconsider the delisting determination that it previously issued, as well as its decision to suspend trading in Luokung ordinary shares effective 7:00p.m. on May 7, 2021.  At this time those discussions are in process and there can be no assurance that Nasdaq will grant our request.

About Luokung Technology Corp.

Luokung Technology Corp. is a leading interactive location-based services and big data processing technology company in China. It provides integrated DaaS, SaaS, and PaaS services for Internet and Internet of Things of Spatial-Temporal big data based on its patented technology. Based on geographic information systems and intelligent Spatial-Temporal big data, it establishes city-level and industry-level digital twin holographic data models to actively serve smart cities, intelligent transportation, smart industry, LBS.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding our or our management's expectations, hopes, beliefs, intentions or strategies regarding the future and other statements that are other than statements of historical fact. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "may", "might", "plan", "probable", "potential", "should", "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination and analysis of the existing law, rules and regulations and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you the statement herein will be accurate. As a result, you are cautioned not to rely on any forward-looking statements.

CONTACT:

The Company:
Mr. Jay Yu
Chief Financial Officer
Tel: +86-10-5327-4727
Email: ir@luokung.com

Investor Relations:
Adam Prior
Senior Vice President
The Equity Group Inc.
Tel: 212-836-9606
Email: aprior@equityny.com

View original content:http://www.prnewswire.com/news-releases/luokung-announces-favorable-ruling-granting-preliminary-injunction-301285458.html

SOURCE Luokung Technology Corp.

FAQ

What is Luokung Technology Corp’s recent legal development?

Luokung Technology Corp. announced that the U.S. District Court granted its motion for a preliminary injunction, allowing it to operate without the restrictions imposed as a Community Chinese military company.

How does the court ruling impact Luokung's stock?

The court ruling potentially stabilizes Luokung's stock by preventing government restrictions that could negatively impact its business.

What is the next step for Luokung after the court ruling?

Following the court's decision, Luokung is engaging with Nasdaq to address its earlier delisting determination.

What are the implications of the court ruling for Luokung's shareholders?

The ruling is seen as a positive development for shareholders, allowing Luokung to continue operations without restrictive government interventions.

When did Luokung announce the favorable court ruling?

The announcement regarding the favorable court ruling was made on May 6, 2021.