Luokung Announces Receipt of Nasdaq Notification Regarding Minimum Bid Price Deficiency

Rhea-AI Summary

Luokung Technology Corp. (NASDAQ: LKCO) received a notification from Nasdaq stating it failed to meet the minimum bid price requirement of US$1.00 for its ordinary shares, as required by Listing Rules 5550(a)(2) and 5810(c)(3)(A). The Company has 180 days to regain compliance by maintaining the bid price above US$1.00 for at least 10 consecutive trading days. If compliance is not achieved by July 5, 2022, Luokung may face delisting. The Company is considering options, including a reverse share split, to meet the requirement.

Positive

• Luokung continues to trade on the Nasdaq Capital Market despite the notification.
• The Company has 180 days to regain compliance, offering a clear timeframe for corrective measures.

Negative

• Failure to comply with Nasdaq's minimum bid price requirement poses a risk of potential delisting.
• The notification indicates a declining stock value, which may affect investor confidence.

BEIJING, Jan. 7, 2022 /PRNewswire/ -- Luokung Technology Corp. (NASDAQ: LKCO) ("Luokung" or the "Company"), a leading spatial-temporal intelligent big data services company and provider of interactive location-based services ("LBS") and high-definition maps ("HD Maps") in China, today announced that it has received a notification letter from The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that it is not in compliance with the minimum bid price requirement set forth in Nasdaq Listing Rules 5550(a)(2) and 5810(c)(3)(A), which require that the closing bid price for the Company's ordinary shares listed on Nasdaq be maintained at a minimum of US$1.00 and failure to maintain it for 30 consecutive trading days constitutes a compliance deficiency.

The notification has no immediate effect on the listing of the Company's ordinary shares on Nasdaq.

In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has 180 calendar days from the date of notification, or until July 5, 2022, to regain compliance with the minimum bid price requirement, during which time the Company's ordinary shares will continue to trade on the Nasdaq Capital Market. If at any time before July 5, 2022, the bid price of the Company's ordinary shares closes at or above US$1.00 per share for a minimum of 10 consecutive business days, Nasdaq will provide written notification that the Company has achieved compliance with the minimum bid price requirement. In the event the Company does not regain compliance by July 5, 2022, the Company may be eligible for additional time to regain compliance or may be delisted from Nasdaq.

The Company intends to monitor the closing bid price of its ordinary shares and may consider options that may be available to achieve compliance, including, but not limited to, implementing a reverse share split of its outstanding ordinary shares at the end of the first or second compliance period, as the situation applies.

About Luokung Technology Corp.

Luokung Technology Corp. is a leading spatial-temporal intelligent big data services company, as well as a leading provider of LBS and HD Maps for various industries in China. Backed by its proprietary technologies and expertise in HD Maps and multi-sourced intelligent spatial-temporal big data, Luokung established city-level and industry-level holographic spatial-temporal digital twin systems and actively serves industries including smart transportation (autonomous driving, smart highway and vehicle-road collaboration), natural resource asset management (carbon neutral and environmental protection remote sensing data service), and LBS smart industry applications (mobile Internet LBS, smart travel, smart logistics, new infrastructure, smart cities, emergency rescue ,among others). The Company routinely provides important updates on its website: https://www.luokung.com.

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: +86-10-6506-5217
Email: ir@luokung.com

Investor Relations:
Ms. Carolyne Sohn
Vice President
The Equity Group Inc.
Tel: 415-568-2255
Email: csohn@equityny.com

View original content:https://www.prnewswire.com/news-releases/luokung-announces-receipt-of-nasdaq-notification-regarding-minimum-bid-price-deficiency-301456367.html

SOURCE Luokung Technology Corp.

FAQ

What does the Nasdaq notification mean for LKCO?

The notification indicates that LKCO is not currently meeting Nasdaq's minimum bid price requirement of US$1.00.

How long does LKCO have to regain compliance with Nasdaq?

LKCO has until July 5, 2022, to regain compliance by maintaining a minimum bid price of US$1.00 for 10 consecutive trading days.

What are the consequences if LKCO fails to meet the minimum bid price?

If LKCO does not regain compliance by the deadline, it may face delisting from Nasdaq.

Is LKCO planning to implement any measures to avoid delisting?

Yes, LKCO is considering options, including a potential reverse share split, to meet Nasdaq's requirements.