Benzinga | Mar 11, 2021 08:33AM EST

Luokung Technology Reports Nasdaq Withdrawal Of Delisting Notice; Will Continue Trading Until May 8, 2021

Luokung Technology Corp. (NASDAQ:LKCO) ("Luokung"), a leading interactive location-based services and big data processing technology company based in China, today announced receipt of a letter from the Department of the Treasury Office of Foreign Assets Control ("OFAC"). The letter confirms that any restrictions on U.S. persons to trade Luokung's securities or derivatives will not take effect until May 8, 2021, and that divestments will be permitted through March 9, 2022. OFAC has also confirmed that the U.S. Department of Defense ("DoD") has listed Luokung as a "Communist Chinese military company" ("CCMC") effective as of March 9, 2021, and that an earlier listing of the company as a CCMC under a misspelled name is no longer effective.

Upon receipt of the OFAC letter, Luokung contacted Nasdaq senior management to inform it of the action taken by OFAC and requested that Nasdaq reconsider the delisting determination that it previously issued, as well as its decision to suspend trading in Luokung ordinary shares effective 9:30a.m. on March 15, 2021. Earlier today Nasdaq notified Luokung in writing that it has withdrawn its delisting letter, and stated that unless there are further changes to the Company's status on the CCMC List, Nasdaq will issue a new delisting determination to be effective May 8, 2021. As a consequence of Nasdaq's action trading in Luokung ordinary shares will not be suspended at 9:30 a.m. on March 15, 2021 as was previously disclosed.

Luokung expresses its sincere gratitude to the management of Nasdaq, which reacted promptly and definitively to the change in OFAC's position, thereby avoiding a disruption in trading of Luokung ordinary shares.