BEIJING, Nov. 13, 2019 /PRNewswire/ -- Luokung Technology
Corp. (NASDAQ: LKCO) ("Luokung" or the "Company"), one of the
global leading spatial-temporal big-data processing technology
companies, a leading interactive location-based services company in
China, today announced that Geely
Technology Group Co. Ltd (hereinafter referred to as "Geely
Technology") and Acuitas Capital, LLC (hereinafter referred to
as "Acuitas") have made strategic investments in Luokung
Technoloy Corp. through the purchase of preferred shares and common
stock. The investment of USD $42.5
million from Geely prompt the Company to complete the
acquisition of 51% of eMapgo Technologies (Beijing) Co., Ltd. (hereinafter referred to as
the "EMG") (the "Acqusition"). As a result, the Company will
immediately begin to consolidate the financial results of EMG,
which will be reflected in the Company fourth quarter and year-end
financial results. The Company anticipates receiving funding
of up to $100 million from Acuitas to
acquire the remaining equity of EMG. Thus, the Company expects to
acquire the balance of EMG by the end of the year 2019.
EMG is one of the major map service providers in China accounting for about 24% of China in-dash navigation market share. EMG
possesses the National Class-A qualification certificates of
navigable Surveying and Mapping, and it is actively developing the
autonomous driving and HD Map services. The completion of the
Acquisition will enable the Company to have a map business with
complete qualifications in China
and enriched map of business data. Through the integration of with
the Company's Superengine spatial-temporal big data engine and
Superengine index cloud and other products and technical services,
it will greatly improve the computing capability and operating
efficiency of mapping data. Meanwhile, combined with the Company's
remote sensing image data service, it can provide more
comprehensive and precise services in smart city, IoT and
Intelligent big data computing. Furthermore, the Acquisition
enables the Company to expand its business into HD Map in
connection to autonomous driving and intelligent transportation and
other service areas, while enabling the Company to provide complete
map data service in the location-based services business. The
Company and EMG have begun to
integrate on development and advancing new products, and the
Company expects to announce major business progress in the near
future.
The Acqusition of EMG
provides the Company with the opportunity to develop its business
model from technology service provider to an integrated AI
spatial-temporal data service provider. With the advance technology
and data source, there will be more comprehensive and diversified
model in services and revenue for the Company.
Since the Company made announcement on August 28, 2019, the Company has begun to pay
EMGs' shareholders in installments based on the acquisition
agreement and the supplementary agreement. At the current stage,
through cash payment and the payment of common stock and preferred
stock, the Company shall obtain more than 51% of EMG's shares, and
the Company expects to complete the 100% of the Acquisition of EMG
before December 31,
2019.
The integration of both the Company and EMG result rapidly
advancing in product development. Mr. Wang
Zhigang, Chairman of EMG, stated "EMG is one of the earliest
navigation electronic map companies in China. Under the circumstances that internet
giants such as Baidu, Alibaba, Tencent are heavily involved in the competition
of the industry, EMG can still walk independently as a neutral
navigation electronic map service provider. To be one of the
leading map service providers in China today, it proves that EMG must has its
unique value and competitiveness."
"Luokung is a spatial-temporal big data company, has a large and
efficient data processing and analysis techniques, and has a mass
of end users, resources and ecological chain financing platform. I
believe that the combination of the two will give EMG a strong
momentum for further development, bringing EMG to a new level and
breadth, on the one hand, improving the map service capabilities in
the field of to Auto and to B, and on the other hand expanding the
map service in the field of to C."
Mr. Xuesong Song, chairman and
CEO Luokung, stated, "The acquisition of EMG marks a significant
milestone for Luokung's development. As EMG will become one of the
important cornerstones of the Company's intelligent
spatial-temporal data service, greatly enhancing the breadth and
extension of the company's spatial-temporal data business services.
Our existing global leading spatial-temporal data processing
technology and EMG data and technology integration will greatly
improve and enrich the function and comprehensiveness of Luokung's
product services and bring a huge increase in income scale. EMG
will keep its independent brand and company operation and keep
stand on its neutral status. EMG will also get full support in
terms of technology, finance and marketing from Luokung.
Mr. Song continues to state: "Thanks to Geely Technology and
Acuitas for their investments in the Company. Previously, Geely
Technology Holdings and the equity participated in the intelligent
transportation services in all aspects of railways and air,
including "Caocao shuttle bus", "Star Ride Travel" that cooperation
with Mercedes-Benz, "Volocopter unmanned electric air flight taxi",
"Terrafugia flying car" and China Railway Gecent Technology Co.,
Ltd., which cooperated with the China State Railway Group Co., Ltd.
and Tencent. The strategic investment
of Geely Technology Holdings to Luokung will greatly enhance its
active expansion of the space as well as its data services in the
intelligent travel field. As the Company's
strategic and long-term value investors, Geely Technology and
Acuitas will assist the Company by introducing other long-term
value investors and international strategic partners. "
For more details on the transaction, please refer to the 6-K
form submitted by the company to the US Securities and Exchange
Commission today.
About Geely Technology Group Co. Ltd
About Geely Technology Group Co. Ltd, changed its name from
Geely Group Co. Ltd, supported by Fortune 500 Geely Holding Group,
focusing on Industrial investment of travelling ecology including
new energy, new technology and new model. It is positioned as an
industry investor and operator in the field of travelling
ecology.
About Acuitas Capital, LLC
Acuitas Capital, LLC is the Los
Angeles- based family office of Terren Peizer, with additional offices in
New York and Beijing. Acuitas invests in emerging growth
companies, with a focus on technology and healthcare. The firm has
an established track record of identifying promising companies and
supporting them throughout their growth by providing capital and
utilizing its relationships to help these companies develop their
businesses.
About eMapgo Technologies (Beijing) Co., Ltd.
eMapgo Technologies (Beijing)
Co., Ltd. is one of the leading navigation electronic map service
providers in China and has
obtained Class-A qualification certificates of navigable surveying
and mapping, internet map service and geographic information system
engineering. It has also obtained quality management system
certificates of ISO9001 and ISO/TS16949 and CMMI3. Its core brand
is "eMapgo". EMG provides users with navigation electronic maps,
ADAS maps and HD maps of China, as
well as geographic location information service through its own map
service platform. Its map database has covered mainland
China, Hong Kong and Macao with over 9-million-kilometer road
networks and 80 million POIs. EMG is a top three mapping company in
automotive in-dash navigation market of China.
About Luokung Technology Corp.
Luokung Technology Corp. is one of the global leading
spatial-temporal big-data processing technology companies and a
leading interactive location-based services company in China. The core brands of the Company are
"Luokuang" and "SuperEngine". "Luokuang" is a mobile application to
provide B2C services and "SuperEngine" provides B2B and B2G
services in connection with Spatial-Temporal big data. The
Company's mobile application LuoKuang, provides location- based
interaction services for users based on the world's first
non-slicing, full-vector and full-function mobile internet map, it
also provides SDK and API embedded services to LBS mobile internet
developers based on its full-vector and non-slicing mobile internet
map. The Company provides completed DaaS, SaaS and PaaS services in
relation to spatial-temporal big data internet and internet of
things relying on its proprietary patented spatial-temporal cloud
indexing technology, in fields including but not limited to HD Map,
3D Map, Internet Application Map, Satellite Remote Sensing Data and
Real-time trajectory. For more information please go to
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
PureRock Communications Limited
Email: luokung@pure-rock.com
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SOURCE Luokung Technology Corp.