BEIJING, March 2, 2021 /PRNewswire/ -- Luokung
Technology Corp. (NASDAQ: LKCO) ("Luokung" or the "Company"), a
leading interactive location-based services and big data processing
technology company in China, today
announced that the Company has sought clarification of the deadline
for U.S. persons to refrain from trading Luokung securities and
derivatives. The deadline could be March 15,
2021 or May 27, 2021,
depending on whether General License 1A (defined below) applies to
the Company. This update relates to Luokung's previously issued
statement: Luokung Announces Statement on Being Included in the
Relevant List by the U.S Department of Defense.
On January 14, 2021, the U.S.
Department of Defense ("DoD") placed the Company on a list of
entities operating directly or indirectly in the United States and deemed to be "Communist
Chinese Military Companies" ("CCMCs") under Executive Order 13959,
issued by former President Trump on November
12, 2020 ("EO 13959"). The DoD designated "Luokong
Technology Corporation (LKCO)" as a CCMC under Section 1237 of the
National Defense Authorization Act for Fiscal Year 1999 ("Section
1237") on January 14, 2021.
Based on EO 13959 and that listing date, the restrictions under
EO 13959 would take effect on March 15,
2021. However, on January 27,
2021, the U.S. Department of the Treasury Office of Foreign
Assets Control ("OFAC") issued General License 1A – Authorizing
Transactions Involving Securities of Certain Communist Chinese
Military Companies ("General License 1A"). Under General
License 1A, OFAC indicated that all transactions and activities
prohibited by EO 13959, as amended by EO 13974 on January 13, 2021, were authorized through
9:30 am Eastern Daylight Time,
May 27, 2021 for any "entity whose
name closely matches, but does not exactly match, the name of" a
CCMC.
Clearly, the name listed by DoD under Section 1237 on
January 14, 2021 is not an exact
match of Luokung, and thus restrictions on U.S. persons' trading of
Luokung securities and derivatives may take effect on May 27, 2021, rather than March 15, 2021, under General License 1A.
The Company has sought clarification from OFAC for confirmation
that General License 1A applies to it and that the deadline for
trading in Luokung securities and derivatives by U.S. persons is
May 27, 2021 instead of March 15, 2021. Luokung will make further public
announcements as warranted by future developments.
Luokung and its external legal counsel are actively considering
a variety of options, including seeking removal from the list or
limiting or eliminating prohibitions under EO 13959, among other
legal actions.
The Company, as a non-state-owned enterprise, has always adhered
to lawful and compliant operations and abided by the relevant laws
and regulations of the place of operation. Throughout its history,
Luokung has complied with all relevant laws and regulations that
apply to the Company's operations.
Luokung's services and products are used for civilian or
commercial purposes or for public services.
The Company confirms that it is not owned, controlled or
affiliated by the Chinese military, nor is it a CCMC under Section
1237.
Luokung will be proactive in taking the appropriate measures to
protect the interests of the Company and its shareholders.
About Luokung Technology Corp.
Luokung Technology Corp. is one of the world's leading
spatial-temporal big-data processing technology companies and a
leading interactive location-based services company in China. It provides integrated DaaS, SaaS, and
PaaS services for Internet and Internet of Things of
Spatial-Temporal big data based on its patented technology. Based
on geographic information systems and intelligent Spatial-Temporal
big data, it establishes city-level and industry-level digital twin
holographic data models to actively serve smart cities, intelligent
transportation, smart industry, LBS. For more information, please
visit http://www.luokung.com.
Business Risks and Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will", "expects", "anticipates",
"future", "intends", "plans", "believes", "estimates", "target",
"going forward", "outlook" and similar statements. Such statements
are based upon management's current expectations and current market
and operating conditions and relate to events that involve known or
unknown risks, uncertainties and other factors, all of which are
difficult to predict and many of which are beyond the Company's
control, which may cause the Company's actual results, performance
or achievements to differ materially from those in the
forward-looking statements. Further information regarding these and
other risks, uncertainties or factors is included in the Company's
filings with the U.S. Securities and Exchange Commission. The
Company does not undertake any obligation to update any
forward-looking statement as a result of new information, future
events or otherwise, except as required under law.
CONTACT:
The Company:
Mr. Jay Yu
Chief Financial Officer
Tel: +86-10-5327-4727
Email: ir@luokung.com
Investor Relations
Adam Prior
Senior Vice President
The Equity Group Inc.
Tel: +1-212-836-9606
Email: aprior@equityny.com
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SOURCE Luokung Technology Corp.