Luokung Announces Receipt of Nasdaq Delisting Notice Subject to Hearing

Rhea-AI Summary

Luokung Technology Corp. (NASDAQ: LKCO) has received a delisting notice from Nasdaq on February 11, 2025, due to non-compliance with listing requirements. The company failed to meet the minimum stockholders' equity requirement of $2.5 million, reporting ($63,228,280) for the year ended December 31, 2023. Additionally, LKCO did not meet alternative compliance criteria regarding market value or net income.

The company submitted a compliance plan on December 9, 2024, which was reviewed and rejected by Nasdaq. LKCO has until February 18, 2025, to appeal the delisting determination. If no appeal is made, trading will be suspended on February 20, 2025. The company is currently exploring options to regain compliance.

Positive

• None.

Negative

• Received Nasdaq delisting notice due to severe non-compliance with listing requirements
• Reported negative stockholders' equity of ($63,228,280), far below the required $2.5 million minimum
• Failed to provide an acceptable compliance plan to Nasdaq
• Faces potential trading suspension and delisting if appeal is unsuccessful

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

FAQ

Why is LKCO being delisted from Nasdaq?

LKCO is facing delisting due to non-compliance with Nasdaq Listing Rule 5550(b), specifically failing to maintain the minimum $2.5 million stockholders' equity requirement and not meeting alternative criteria for market value or net income.

What is LKCO's current stockholders' equity as of December 31, 2023?

LKCO reported stockholders' equity of ($63,228,280) for the year ended December 31, 2023, significantly below Nasdaq's minimum requirement of $2.5 million.

When will LKCO be delisted if they don't appeal?

If LKCO fails to appeal by February 18, 2025, trading will be suspended on February 20, 2025, and the company will be delisted from Nasdaq.

What options does LKCO have to prevent delisting?

LKCO can appeal the delisting determination to the Nasdaq hearing panel before February 18, 2025, which would stay the suspension of trading while the appeal is pending.