Luokung Technology Corp. (LKCO) is down in the Pre-market; here is why?

Luokung Technology Corp. (LKCO) is slightly down in the pre-market after constantly pricing below $1 despite the NASDAQ’s notification in January. LKCO values $0.82, losing more than 6.7% compared to yesterday’s closing price. The stock closed at $0.88 at the end of the last trading session. The stock volume traded in the last trading session was around 2.73 million shares. The current market cap of the company is around $302.64 million.

LKCO received notification from NASDAQ in January

To be eligible for listing on Nasdaq, Luokung Technology Corp. (LKCO) must have traded at least $1.00 for 30 consecutive trading days, as required by Nasdaq Listing Rule 5550(a)(2) and 5810(c)(3)(A). The NASDAQ listing of the company is unaffected by the announcement.

Company may be removed from NASDAQ if the minimum bid price is not met within 180 days of notification or until July 5, 2022. NASDAQ’s policy is to notify a company when its ordinary shares settle at or above $1.00 per share for at least ten consecutive business days. To be eligible for an extension or delisting from NASDAQ, the corporation must regain compliance by July 5, 2022.

LKCO 2nd Half results of fiscal 2021 are still pending

LKCO is yet to announce its results for the second half of fiscal 2021. The highlights of the first half of fiscal 2021 are:

• The first half of 2021 brought in $37.8 million in revenue, relative to $7.3 million in the same period last year.
• The company announced a net loss of $26.7 million in the first half of 2021 relative to the $18.9 million loss in the same period last year.
• LKCO reported diluted and basic loss per share of $0.09 for the first half of 2021 remained unchanged from the previous year’s first six-month period.

Conclusion

The company is currently going through a rough time. Its revenue is down, but they also have to meet the NASDAQ’s listing compliance to keep it listed on NASDAQ. Following the first or second compliance period, the Company may perform a reverse share split of its outstanding ordinary shares to ensure compliance.