BEIJING, March 27, 2023 /PRNewswire/ -- Luokung Technology Corp. (NASDAQ: LKCO) ("Luokung," "we," "our" or the "Company"), a leading spatial-temporal intelligent big data services company and provider of interactive location-based services ("LBS") in China, today announced that it has signed a shares subscription agreement with a strategic investor CHINA ORIENT SMART ECOTECH INVESTMENT GROUP LIMITED ("COIG"), pursuant to which the Company agreed to issue a total of 5,469,019 restricted ordinary shares for an aggregate of USD220 million of strategic investment.

The closing of the investment is in two tranches. The first tranche of $22 million is expected be within 30 working days from the date of the Share Subscription Agreement, and the remaining $198 million is expected to be within 60 days thereafter. COIG is to receive ordinary shares with a six-month sales restriction, and unregistered shares come with the right to be exchanged for equity of independent operating subsidiaries of the Company within 24 months from the closing.

Mr. Xuesong Song, Chairman and CEO of Luokung, stated "We are delighted to announce that our company has successfully secured a long-term strategic investment from COIG. COIG has been committed to long-term industrial investment in areas such as intelligent connected cars, vehicle networking, autonomous driving, and IoT smart data. As a strategic investment shareholder of Verizon Connect in China, COIG will strongly support our business development in the fields of autonomous driving and vehicle-road coordination."

Mr. Song continued, "In this financing process, we reached the Company's financing valuation through private equity financing of unlisted companies with our future strategic partner COIG. In the current situation where the company's market value is extremely low, we have achieved the maximum value realization and protection for the Company's shareholders. In addition, COIG has obtained the right to exchange a portion of the equity of relevant independent operating entities under the Company for a portion of the investment amount at the original investment value within the next 24 months. This not only demonstrates our strategic partner's recognition of the value and development support for our relevant operating assets but also ensures the investment returns to a long-term strategic partner."

"This financing is a win-win solution that brings value to our long-term strategic investment partner, the Company's shareholders, and all parties involved. We are delighted with this achievement! With this strategic investment, we look forward to seeing rapid development in areas of autonomous driving, vehicle-road coordination, and carbon-neutral data services. We will continue to work tirelessly to create more value for our shareholders, customers, partners, and society."

About Luokung Technology Corp.

Luokung Technology Corp. is a leading spatial-temporal intelligent big data services company, as well as a leading provider of LBS for various industries in China. Backed by its proprietary technologies and expertise in multi-sourced intelligent spatial-temporal big data, Luokung has established city-level and industry-level holographic spatial-temporal digital twin systems and actively serves industries including smart transportation (autonomous driving, smart highway and vehicle-road collaboration), natural resource asset management (carbon neutral and environmental protection remote sensing data service), and LBS smart industry applications (mobile Internet LBS, smart travel, smart logistics, new infrastructure, smart cities, emergency rescue, among others). The Company routinely provides important updates on its website: https://www.luokung.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding our or our management's expectations, hopes, beliefs, intentions or strategies regarding the future and other statements that are other than statements of historical fact. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "may", "might", "plan", "probable", "potential", "should", "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination and analysis of the existing law, rules and regulations and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you the statement herein will be accurate. As a result, you are cautioned not to rely on any forward-looking statements.

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SOURCE Luokung Technology Corp.

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