Luokung Technology Corp (NASDAQ: LKCO) stock fell 29.11% on October 14th, 2019 (Source: Google finance) but recovered over 7.7% in the pre-market session on October 15th, 2019 (Source: Google finance though it is underperforming from more than the month.
Recently the company has signed a strategic agreement with People’s Daily Online Technology (Beijing) Co.,Ltd (“People’s Daily Online”) to establish a strategic technology cooperative relationship. Both the parties has planned to promote in-depth cooperation on jointly development of but not limited to five fields, that also includes news map and the platform for contents authors, cooperative operation on contents of trip services related to high-speed train, brand promotion cooperation, activity cooperation and talent exchange. Based on Luokung’s LBS interaction technology, each information content with local attributes will get directly presented on the map, and Luokung’s AI knowledge learning assistant system “BotBrain Zhiyu” will used to offer users contents base on more precise interest and demand. Based on the location, the users can interact with more contents on the map to maximize the value of the content and promote the efficient dissemination of the main thematic values.
Moreover, the company has signed an agreement for the acquisition of 100 percent of the equity interests of eMapgo Technologies (Beijing) Co., Ltd. (“EMG”) from EMG’s original shareholders for RMB 836 million (approximately equivalent to USD 119 million). The transaction includes about RMB 709 million in cash, and the remaining RMB 127 million will be paid by the Company’s common share at the conversion rate of $7 dollars per share. The agreement to acquire EMG is based on the condition, among other things, the Company’s ability to raise the necessary financing to consummate the acquisition of EMG. The Company anticipates the completion of the Acquisition will substantially raise its holding quantity of the underlying data, and to increase its long-term sustainable production capabilities of the underlying data collection. The integration of EMG’s underlying data and SuperEngine’s data engine is expected to expand the Company’s capability beyond provision of technical prowess to much deeper and richer scenarios. Therefore, the Company will get the ability to establish a complete set of solutions covering full upstream and downstream industrial chains.
Further, the Company plans to launch China’s first Spatial-Temporal full-vector non-tiled covering indoor and outdoor map, by combining the technology from its subsidiary, Yuanli Anda, which is a Company with largest indoor geographic location data in China along with EGM’s underlying data, provide customized real-time dynamic location services for enterprises in various industries. After the Acquisition, EMG will continue to conduct its business activities independently and offer services to customers as a neutral mapping-company.