Luokung Technology Corp. faces delisting from Nasdaq after failing to meet listing requirements and plans to appeal the decision.
Quiver AI Summary
Luokung Technology Corp. announced that it has been notified by Nasdaq that it is not in compliance with listing requirements, specifically regarding stockholders' equity, which was reported as negative $63.2 million for the fiscal year ending December 31, 2023. The Nasdaq determined that Luokung did not submit a definitive plan demonstrating its ability to regain compliance. The company had initially submitted a compliance plan by the December 9, 2024 deadline but received a denial from Nasdaq. Luokung has until February 18, 2025, to appeal this delisting determination, which, if successful, would allow its securities to remain listed on the Nasdaq. If the company does not appeal, trading of its shares will be suspended on February 20, 2025. Luokung is exploring options to regain compliance with the listing rules.
Potential Positives
- The company intends to appeal the Delisting Determination, which allows it to remain listed on Nasdaq while the appeal process is ongoing.
- Luokung is actively considering options to regain compliance with Nasdaq listing requirements, demonstrating a proactive approach to the situation.
Potential Negatives
- The company is facing delisting from Nasdaq due to non-compliance with listing requirements, specifically a negative stockholders' equity of over $63 million.
- Nasdaq's denial of the company's compliance plan indicates serious concerns about its financial viability and ability to sustain listing over time.
- The impending suspension of trading on the Nasdaq market raises significant concerns about the company's ability to attract investors and operate effectively in the market.
FAQ
What is the reason for Luokung's potential delisting from Nasdaq?
Luokung is not in compliance with Nasdaq Listing Rule 5550(b) due to insufficient stockholders' equity and lack of a definitive compliance plan.
What happens if Luokung does not appeal the delisting decision?
If Luokung fails to appeal by February 18, 2025, trading of its shares will be suspended on February 20, 2025.
What steps has Luokung taken to address its compliance issue?
Luokung submitted a compliance plan to Nasdaq by December 9, 2024, and intends to request a hearing to appeal the delisting determination.
What is the deadline for Luokung to request an appeal?
The deadline for Luokung to request an appeal of the delisting determination is February 18, 2025.
How can I get updates on Luokung's situation?
Luokung routinely provides important updates on its official website at https://www.luokung.com.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$LKCO Hedge Fund Activity
We have seen 0 institutional investors add shares of $LKCO stock to their portfolio, and 6 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- SICART ASSOCIATES LLC removed 169,378 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $421,260
- CITADEL ADVISORS LLC removed 4,799 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $11,935
- UBS GROUP AG removed 4,192 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $10,425
- ROYAL BANK OF CANADA removed 92 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $228
- BANQUE CANTONALE VAUDOISE removed 75 shares (-0.5%) from their portfolio in Q3 2024, for an estimated $186
- FARTHER FINANCE ADVISORS, LLC removed 25 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $62
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
BEIJING, Feb. 14, 2025 (GLOBE NEWSWIRE) -- Luokung Technology Corp. (NASDAQ: LKCO) (“Luokung” or the “Company”)
today announced that on February 11, 2025, it has received a letter (the “Letter”) from The Nasdaq Stock Market LLC (“Nasdaq”), notifying that the Company is not in compliance with Nasdaq Listing Rule 5550(b), and the Nasdaq staff has determined that the Company did not provide a definitive plan evidencing its ability to achieve near term compliance with the continued listing requirements or sustain such compliance over an extended period of time. As a result, the Nasdaq staff has determined to deny the Company’s request for continued listing on The Nasdaq Capital Market (the “Delisting Determination”).
As previously reported, on October 23, 2024, Nasdaq notified the Company that based on information reported in the Company’s annual report on Form 20-F for the fiscal year ended December 31, 2023 (the “2023 20-F”), it no longer complied with the minimum stockholders’ equity of $2.5 million for continued listing on the Nasdaq Capital Market under Listing Rule 5550(b)(1) while stockholders’ equity for the year ended December 31, 2023 was reported as ($63,228,280), and the Company did not meet the alternatives of market value of listed securities or net income from continuing operations. The Company had 45 calendar days, or until December 9, 2024, to submit a plan to regain compliance. If the plan is accepted, Nasdaq can grant an extension of up to 180 calendar days from October 23, 2024, or April 21, 2025, to evidence compliance. The Company submitted its compliance plan to Nasdaq staff on December 9, 2024. The Nasdaq staff issued the Letter after reviewing such plan.
Based on the Letter, the Company was provided until February 18, 2025 to request an appeal of the Delisting Determination to the hearing panel.
The Company intends to request such hearing to appeal the Delisting Determination before that date, which will stay the suspension of its securities from the date of the request, during which time such securities will continue to be listed on The Nasdaq Capital Market.
If the Company fails to appeal the Delisting Determination by February 18, 2025, trading of the Company’s ordinary shares will be suspended at the opening of business on February 20, 2025, and a Form 25-NSE will be filed with the Securities and Exchange Commission, which will remove the Company’s securities from listing and registration on The Nasdaq Stock Market.
The Company is considering all potential options available to it to regain compliance with the aforementioned rules.
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 has 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
.
CONTACT:
The Company:
Mr. Jian Zhang
Chief Financial Officer
Tel: +86-10-6506-5217
Email:
ir@luokung.com
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
