Luokung Technology Corp. Announces the Closing of $100 Million Registered Direct Offering Priced At-the-Market under Nasdaq Rules

Rhea-AI Summary

Luokung Technology Corp. (NASDAQ: LKCO) announced on February 22, 2021, the closing of a registered direct offering. This involves 48,076,923 ordinary shares and warrants for 19,230,768 shares, priced at $2.08 each, yielding approximately $100 million in gross proceeds. The warrants, with an exercise price of $2.38, expire in three years. The funds will be utilized for working capital and general corporate purposes. FT Global Capital served as the exclusive placement agent. The offering was priced in accordance with Nasdaq regulations.

Positive

• Raised approximately $100 million in gross proceeds for working capital and corporate purposes.
• The offering was priced at-the-market, indicating demand at current stock levels.

Negative

• Issuance of new shares may lead to dilution of existing shareholders' equity.
• Warrants have an exercise price above current market value, potentially impacting market perception.

BEIJING, Feb. 22, 2021 /PRNewswire/ -- Luokung Technology Corp. (the "Company" or "Luokung") (NASDAQ: LKCO), today announced that on February 19, 2021, it closed its previously announced registered direct offering of (i) 48,076,923 ordinary shares and (ii) warrants to purchase 19,230,768 ordinary shares at a combined purchase price of $2.08. The gross proceeds to Luokung from this offering are approximately $100,000,000, before deducting placement agent fees and other estimated offering expenses. The warrants have an exercise price of $2.38 per share and expire three years from the date of issuance. The offering was priced at-the-market under Nasdaq rules.

FT Global Capital, Inc. acted as the exclusive placement agent for the transaction.

Pryor Cashman LLP acted as counsel to the Company and Sheppard, Mullin, Richter & Hampton LLP acted as counsel to the placement agent in connection with the offering.

The Company intends to use the net proceeds from this offering for working capital and general corporate purposes.

The securities were offered pursuant to an effective shelf registration statement on Form F-3 (File No. 333-233108) previously filed with the U.S. Securities and Exchange Commission (the "SEC"). A prospectus supplement and accompanying prospectus relating to the offering have been filed with the SEC and are available for free on the SEC's website at www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, and these securities cannot be sold in any state in which this offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.

About Luokung Technology Corp.

Luokung Technology Corp. is one of the global leading spatial-temporal big-data processing technology companies and a leading interactive location-based services company in China. The core business brands of the Company are "Luokuang" and "Superengine". The Company mainly provides spatial temporal big data PaaS, SaaS and DaaS intelligent services based on its self-developed patented technology which can be applied in Mobile Internet LBS, Internet Travelling, Intelligent Transportation, Automatic Drive, Smart City, Intelligent IoT, Natural Resources Exploration and Monitoring and so on. These services are integrated intelligent computing and application services for spatial temporal data which including but not limited to Satellite and UAV Remote Sensing Image Data, HD Map, 2D and 3D Internet Map, Real-time Trajectory, IoT Industrial Stream Data. For more information please go to http://www.luokung.com.

Safe Harbor Statement 

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the risk factors discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on the SEC's website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the applicable securities laws, the Company does not assume a duty to update these forward-looking statements.

CONTACT:

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

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SOURCE Luokung Technology Corp.

FAQ

What was the purpose of Luokung's recent offering?

Luokung intends to use the proceeds from the offering for working capital and general corporate purposes.

How much did Luokung raise in the recent offering?

Luokung raised approximately $100 million in gross proceeds from the offering.

What is the exercise price of the warrants issued by Luokung?

The warrants issued by Luokung have an exercise price of $2.38 per share.

When do the warrants issued by Luokung expire?

The warrants expire three years from their issue date.