Luokung Technology Corp. (LKCO) stock prices were down by 6.40% as of the market closing on May 11th, 2021, bringing the price per share down to USD$1.17. Subsequent pre-market fluctuations saw the stock rally by 7.69%, bringing it back up to USD$1.26.
Trading of Shares Halted
LKCO dropped a bombshell at the end of April 2021 when it announced that the trading of its ordinary shares would be suspended as of the commencement of the trading day on May 9th, 2021. Additionally, the end of the traading day on May 7th, 2021 would see the halting of the trading of LKCO securities. These retricctions were a result of the company having been given a Communist Chinese military company designation, which put LKCO at the mercy of Executive Order 13959.
The U.S. Department of Defense added LKCO to the Section 1237 List of CCMCs on January 14th of 2021. In a strange sequence of events, the company had its name misspelled by the DoD, which resulted in the U.S. Department of the Treasure Office of Foreign Assets Control (OFAC) to notify LKCO that the misspelled company had been delisted, while LKCO was redesignated using it correct spelling.
Resisting CCMC Designation
LKCO and two U.S. shareholders have filed a joined complaint with the United States District Court for the District of Columbia in regard to the devastating developments. Under the complaint, the U.S. DoD’s designation of LKCO as a CCMC and the resulting restrictions stemming from Executive Order 13959 by former President Trump are both in violation of the law.
Request for Preliminary Injunction
Expecting the lawsuit to reach a conclusion past the date of what the lawsuit is fighting against, LKCO has filed a motion for a preliminary injunction that will defer the CCMC designation and associated trading restrictions until the case has been settled. With the company confident of an outcome in their favor, they argue that the failure to issue an injunction could end up having unmerited and disastrous effects on the company’s balance of equities as well as public interest.
Preliminary Injunction Granted
The company announced on May 6th, 2021 that LKCO’s previously announced motion for a preliminary injunction was granted by the U.S. District Court for the District of Columbia. As per the results of the ruling, the Department of Defense and other government defendants are prohibited from implementing or enforcing the designation of LKCO as a CCMC, as well as any consequential restrictions pursuant to Exevutive Order 13959.
Future Outlook for LKCO
With immediate and devastating disaster having been circumvented with the granting of the preliminary injunction, the company is now focused on addressing its political concerns, which it is confident it will be able to do. LKCO hopes this debacle will prove to have been a minor speedbump in the company’s history as it continues leveraging its resources to ensure significant and sustained increases in shareholder value for years to come.