BEIJING - Luokung Technology Corp. (NASDAQ: LKCO), a provider of spatial-temporal intelligent big data services and high-definition maps in China, has regained compliance with the Nasdaq Capital Market's minimum bid price requirement, the company announced today. The Nasdaq notified Luokung that its ordinary shares' closing bid price stayed at or above the $1.00 per share threshold for 10 consecutive business days as of September 30, 2024.
This development follows the company's efforts to meet the Nasdaq Marketplace Rule 5550(a)(2), which stipulates that listed companies must maintain a minimum bid price of $1.00 per share. Luokung's compliance was confirmed in a letter from Nasdaq received on October 1, 2024, which also indicated that the matter is now considered closed.
Luokung Technology Corp. specializes in location-based services (LBS) and high-definition maps (HD Maps) for various industries, including smart transportation, natural resource asset management, and LBS smart industry applications. The company's proprietary technologies support the creation of city-level and industry-level holographic spatial-temporal digital twin systems.
The announcement is based on a press release statement and does not constitute an endorsement of Luokung's market position or future prospects. The news reflects the company's current compliance status with Nasdaq's listing requirements. Luokung routinely updates stakeholders about its corporate developments on its website.
In other recent news, Luokung Technology Corp. announced a significant change in its share structure with an 8-to-1 share consolidation. This move, approved by the company's board of directors, will transform every eight issued and outstanding ordinary shares into one. Notably, this consolidation will not lead to the creation of fractional shares, as any fractions resulting from the process will be rounded up to the nearest whole number.
The company has made it clear that this action will not alter shareholders' percentage interest in Luokung's outstanding ordinary shares, with the exception of minor adjustments due to the rounding of fractional shares. The NASDAQ Capital Market will continue to list the company's shares under the ticker symbol LKCO, and the new CUSIP number post-consolidation will be G56981 114.
These changes are part of recent developments within Luokung, with the company planning to file a restated and amended Memorandum and Articles of Association with the British Virgin Islands Registry of Corporate Affairs to reflect the change. As per the company's governing documents, no further approval from the company's members is required for this share consolidation.
InvestingPro Insights
While Luokung Technology Corp. (NASDAQ: LKCO) has successfully regained compliance with Nasdaq's minimum bid price requirement, recent market data from InvestingPro reveals a more complex picture of the company's financial health and stock performance.
According to InvestingPro data, LKCO's market capitalization stands at a modest $6.05 million, reflecting its status as a small-cap company in the spatial-temporal intelligent big data services sector. The stock's price-to-earnings (P/E) ratio of -0.12 suggests ongoing profitability challenges, which may be of interest to investors considering the company's future prospects in the competitive tech landscape.
Despite the positive news of Nasdaq compliance, InvestingPro Tips highlight that LKCO's stock has experienced significant volatility. While there has been a notable 11.17% return over the past week, the longer-term trend shows a concerning pattern. The stock has seen a substantial decline of 41.42% over the past month and an even more dramatic 49.17% drop over the last three months. This volatility aligns with the InvestingPro Tip indicating that the stock "generally trades with high price volatility."
Another InvestingPro Tip points out that LKCO "suffers from weak gross profit margins," which could be a critical factor for investors to consider, especially in light of the company's specialization in high-tech services that typically require significant investment in research and development.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and insights that could provide valuable context to Luokung's recent compliance achievement and its overall market position. There are 7 more InvestingPro Tips available for LKCO, which could offer deeper insights into the company's financial health and market performance.
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