Luokung Technology Corp. (LKCO), a big-data processing technology company, has seen an increase of 7.56% in premarket trading session. As a result, LKCO stock was changing hands at $1.28 when last checked. On Monday, LKCO stock plummeted by 25.16% in regular trading session and closed the day at $1.19. The reason for that decline was the announcement of $32.8 million registered direct offering.
Securities purchase agreement
On Monday, LKCO announced to enter into a securities purchase agreement with institutional investors. The agreement was meant for a registered direct offering of $32.8 million of ordinary shares. The price was $1.20 per share. The company said that it would issue 27,333,300 ordinary shares to the institutional investors. LKOC also had to issue warrants to the investors as part of agreement. The company issued warrants for purchase of up to 13,666,650 ordinary shares at an exercise price of $1.60 per share. They would have a term of three years from the date of issuance. The company said that it would use the proceeds from the offering for working capital and for general corporate purposes. The expected closing date of offering was 22nd September. FT Global Capital, Inc. served as the exclusive placement agent for transaction.
LKCO affiliate agreement with Microsoft
On 16th September, LKCO announced that its operating affiliate eMapgo Technology Ltd. (EMG) has signed agreement of cooperation with Microsoft. The agreement was meant to launch autonomous driving services for automakers. eMapgo is among the leading providers of navigation and electronic map services in China. Under the agreement, EMG had to work with Microsoft to services to auto manufacturers. The services included management and simulation testing of autonomous driving data, to assist automakers in implementation of driving technologies in China. According to company, through agreement, EMG and Microsoft would form a close cooperation that would address numerous auto-market opportunities. EGM has obtained service contracts from European Car manufacturers, and besides, from a US car manufacturer as well. The company would implement the contracts in next few months.
1HFY 2021 revenue results
On 26th August, LKCO reported the revenue results for first half of fiscal 2021, ended 30th June. According to the details, the company posted record revenue of $37.8 million during the six month period. As compared to that, during first half of 2020, the revenue was $7.3 million. The LBS business contributed $31.6 million in terms of revenue. The revenue from sales of remote sensing and GIS data management services platform software and services was $4.4 million. During equivalent period of 2020, that was $0.24 million. The EMG business contributed $1.8 million in terms of revenue.
What investors should expect from LKCO?
Looking on stats, LKCO doesn’t appear to be the best stock to buy in current times. The stock has declined by 53% during last 4 months, but on positive side, it increased 160% during last 12 months. Based on that, investors should be cautious while investing in LKCO stock.
