Luokung Technology Corp. (LKCO) announced the closing of the acquisition of eMapgoTechnologies Co., Ltd after which the shares of LKCO stock were popping high in Wednesday’s open market and today’s pre-market. At the previous closing, the LKCO stock was up by 5.48% with a $1.54 per share price while in today’s pre-market, LKCO stock saw a push of 7.14% to reach $1.65 a share at the time of this writing. Luokung stock has been very much in the news for the past few weeks. Let’s look into some recent events of LKCO stock.
What’s happening?
Luokung Technology Corp. (LKCO) is the leading developer of mobile application products and location-based service providers in China.LKCO stock is a hot topic among investors for the past few weeks due to various announcements by the company.LKCO has recently closed on the acquisition of 100% equity interest to become the holder of eMapgo Technologies, which provides navigation and e-map services in China. This closing will benefit LKCO in technological advancements especially in the autonomous field, electric vehicles, smart cities, and intelligent transportation.
In the previous week, LKCO announced the confirmation letter that says trading of LKCO shares will not be restricted until May 8, 2021, and divestment will be permitted through MARCH 9, 2022. Previously the LKCO stock announced the filing of a motion for Temporary Restraining order with its two U.S shareholders in response to the allegations made by the Department of Defence that Luokung is the Communist Chinese military company and imposed restrictions under Executive Order 13959 which was signed by the former president Trump.
In February LKCO registered direct offerings of 48,076,923 ordinary shares and warrants of 19,230,768 ordinary shares at a $2.08 combined purchase price.$10,000,000 gross proceeds were estimated while $2.38 exercise price of warrants had been declared with three years validity from the issuance date.
Conclusion
The penny LKCO stock is continuing the rising trend in the pre-market as of now. Looking management is optimistic to expand its network and get a competitive advantage due to the recent closing of the acquisition. Hence long-term investors should keep an eye on this stock.
