Actions of Luokung technology (NASDAQ: LKCO) were up on Friday after the Chinese provider of autonomous vehicle and drone tracking services announced another stock offering. As of 1:15 p.m. EST, the stock price had risen 35% to $ 1.62.
In a press release Thursday, Luokung said it would launch a direct offering of 16.9 million shares at $ 0.88 per share, raising $ 15 million for the company. These investors will also receive warrants to purchase additional shares worth $ 9.375 million at $ 1.11 per share at a later date. The proceeds from the sale of shares to institutional investors will be used for working capital and general corporate needs. The offer is scheduled to close on February 16 and follows a $ 5 million direct offer that closed earlier this week.
The stock has been up since the start of the week, having more than doubled after the first stock offering and after news that the company’s takeover eMapgo Technologies has partnered with Beijing New Energy Automobile to work together on autonomous vehicles.
Luokung has long negotiated the penny stock range, and the company has a habit of diluting its shareholders. However, enthusiasm is also mounting for autonomous vehicle technology and drone technology, especially after China on January 1 implemented a new regulatory standard under which companies can use unmanned aerial vehicles to express delivery.
EHang, another Chinese drone company, has also seen its shares rise in recent months amid enthusiasm over the potential of drone deliveries. Considering the history of Luokung’s stock dilution, it may be too early to call its stock a buy, but this story is definitely worth watching, especially for any investor interested in the technology of Luokung. cartography, autonomous vehicles or drones.
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