Luokung Announces Statement on Being Included in the Relevant List by the U.S Department of Defense

Rhea-AI Summary

Luokung Technology Corp. (NASDAQ: LKCO) announced its inclusion in a list of companies by the U.S. Department of Defense under Section 1237 of the National Defense Authorization Act on January 14, 2021. The Company asserts it is a non-state-owned enterprise, not affiliated with the Chinese military, and committed to lawful operations. Luokung is evaluating the impact of this listing and will comply with required disclosures to protect shareholder interests. They advise investors to stay informed about potential risks.

Positive

• None.

Negative

• Inclusion in a U.S. Defense Department list may lead to increased scrutiny and potential operational challenges.
• Potential implications for future contracts or business opportunities due to the listing.

BEIJING, Jan. 15, 2021 /PRNewswire/ -- Luokung Technology Corp. (NASDAQ: LKCO) ("Luokung" or the "Company"), a leading interactive location-based services and big data processing technology company in China, today announced that the Department of Defense of the United States, on January 14, 2021 (US Time), released names of additional 9 companies under Section 1237 of the National Defense Authorization Act for Fiscal Year 1999, and the Company was included in the list. The full release may be referenced at: https://www.defense.gov/Newsroom/Releases/Release/Article/2472464/dod-releases-list-of-additional-companies-in-accordance-with-section-1237-of-fy/.

The Company, as a non-state-owned enterprise, has always adhered to lawful and compliant operations and abided by the relevant laws and regulations of the place of operation. Its services and products are used for civilian or commercial purposes or for public services. The Company confirms that it is not owned, controlled or affiliated by the Chinese military, nor is it a Chinese military company under the statutory definition of the National Defense Authorization Act.  The Company will take appropriate measures to protect the interests of the company and shareholders.

The Company is fully assessing the possible impact of this incident on the Company, responding accordingly, and actively communicating with all parties.

The Company will strictly abide by the relevant rules and timely perform its information disclosure obligations based on the development of subsequent events. Investors are kindly requested to pay attention to the company's announcements and beware of investment risks.

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. http://www.luokung.com

Business Risks and Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will", "expects", "anticipates", "future", "intends", "plans", "believes", "estimates", "target", "going forward", "outlook" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

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

INVESTOR RELATIONS
PureRock Communications Limited
Email: luokung@pure-rock.com

 

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SOURCE Luokung Technology Corp.

FAQ

What does it mean for LKCO to be included in the US Department of Defense list?

Being included in the US Department of Defense list may raise concerns regarding business operations and partnerships for LKCO.

On what date was LKCO added to the US Department of Defense list?

LKCO was added to the US Department of Defense list on January 14, 2021.

How is LKCO responding to its inclusion in the Department of Defense list?

LKCO is assessing the impact and will communicate any necessary disclosures to protect shareholder interests.

What should investors of LKCO be cautious about following this announcement?

Investors should be aware of potential risks and the implications of LKCO's increased scrutiny due to the Department of Defense listing.