DoD tests AI models that make it easy to switch from vendors like Palantir
BEIJING - Luokung Technology Corp. (NASDAQ:LKCO), a company specializing in spatial-temporal intelligent big data services, announced it will undergo an 8-to-1 share combination of its ordinary shares. The change is slated to take effect on Tuesday, September 17, 2024, with shares trading on a split-adjusted basis from market open on that day.
The share combination will consolidate every 8 issued and outstanding ordinary shares into one. This move will not generate fractional shares; instead, any fractions resulting from the combination will be rounded up to the nearest whole number. The company's total authorized shares will remain at 1 billion, with the par value per share revised to $0.0001 following the consolidation.
According to the company's statement, this action will not alter shareholders' percentage interest in Luokung's outstanding ordinary shares, except for 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.
The board of directors of Luokung has approved the share combination, and no further approval from the company's members is required as per the company's governing documents. The company plans to file a restated and amended Memorandum and Articles of Association with the British Virgin Islands Registry of Corporate Affairs to reflect the change.
Luokung Technology Corp. operates in various industries within China, providing location-based services (LBS) and establishing holographic spatial-temporal digital twin systems. Their services support smart transportation, natural resource management, and LBS smart industry applications among others.
This share combination is a strategic move by Luokung's management and is based on the company's internal decisions without the need for external member approval. The information regarding this corporate action is based on a press release statement from Luokung Technology Corp.
InvestingPro Insights
As Luokung Technology Corp. (NASDAQ:LKCO) prepares for its upcoming share combination, investors are closely monitoring the company's financial health and market performance. InvestingPro data provides a snapshot of the company's current valuation and market sentiment. Luokung, with a market capitalization of $9.46 million, is trading at a low Price / Book multiple of 0.12 as of the last twelve months ending Q2 2024. This metric may intrigue value investors seeking underpriced stocks relative to their book value. However, the company's operating income margin stands at -138.28%, and its return on assets is -19.34% for the same period, signaling operational challenges.
The stock has experienced significant volatility, with a one-week price total return of -15.59% and a one-month return of -18.18%. Over a longer-term period, the six-month price total return is -28.0%, while the year-to-date return has been a positive 9.47%. These figures suggest that while the stock has had some recent gains, it has faced considerable downward pressure over the past months.
InvestingPro Tips highlight two key points for investors to consider. Firstly, analysts anticipate sales growth in the current year, which could indicate potential for recovery or growth despite recent price declines. Secondly, the stock is noted for trading with high price volatility, which may appeal to certain traders but also implies a greater risk level for investors.
For those interested in a deeper analysis, InvestingPro offers additional tips on Luokung Technology Corp., providing investors with a more comprehensive understanding of the company's financial outlook and market position. Visit InvestingPro for further insights and to explore the full list of tips available for LKCO.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.