Chinese Mapping Company Luokung Scores $15 Million Funding

Luokung will sell 17 million shares at a discounted price of 88.8 cents to a group of investors.
Benjamin WangFeb 11,2021,18:05

Luokung Technology Corp. (Nasdaq: LKCO) announced Thursday that it has struck a securities purchase agreement for a registered direct offering of $15 million ordinary shares at 88.8 cents per share.

The price of the offering represents a discount of 24.7% from Wednesday’s close.

The Beijing-based mapping technologies provider said it will issue 16.9 million ordinary shares to a group of institutional investors. As part of the deal, Luokung will also offer warrants for the purchase of up to 8.4 million shares at $1.11 apiece. The warrants will mature in three years.

According to the company, it intends on using the proceeds for general corporate purposes and working capital. The offering is expected to close on or about February 16.

The sole placement agent on the deal is FT Global Capital, Inc.

LKCO stock rose 4% in premarket trading, but slipped to red territory intraday, now down 5% to $1.06 per share. Over the past 12 months, Luokung’s stock dropped 33%.

Earlier this month, the company announced its newly acquired business, eMapgo Technologies, struck a deal on the development of autonomous driving with Beijing New Energy Automobile for BNEA's electric vehicles.

Luokung expects to benefit from the government initiatives in the autonomous driving space. From 2016 to 2019, Beijing issued a series of policies supporting R&D of the industry. In 2020, to respond to the demand for high-precision maps in the development of autonomous driving technology, the state has provided guidance for the development of the high-precision map market in terms of construction direction, entry barriers, and map surveying and safety.

Meanwhile in New York, Luokung made the blacklist of companies that President Donald Trump’s administration claimed have links to the Chinese military, and its continued trading has come under threat.

Luokung has denied any relation to China's military and said it will take appropriate measures to protect the interests of the company and shareholders.

Topics:Luokung; China; U.S.