Kingtone Wirelessinfo Solution Holding Ltd Announces Closing of Asset Exchange Agreement and Name Change to Luokung Technology Corp.
Luokung Technology Corp. (formerly known Kingtone Wirelessinfo Solution Holding Ltd,Nasdaq: KONE) (the "Company"), a company incorporated in British Virgin Islands ("BVI"), today announced that it has completed the transactions contemplated by the Asset Exchange Agreement ("AEA") with C Media Limited ("C Media") entered into on January 25, 2018, and has changed its name to Luokung Technology Corp., effective August 20, 2018.
On January 25, 2018, the Company executed the AEA with C Media, pursuant to which the Company agreed to purchase all of the capital stock and equity interests of LK Technology Ltd., together with its wholly-owned subsidiaries MMB Limited and Mobile Media (China) Limited and all their respective subsidiaries, from C Media in exchange for (i) 185,412,599 ordinary shares of the Company, par value $0.01 per share, (ii) 1,000,000 preferred shares of the Company and (iii) all of the issued and outstanding capital stock or equity interests of the Company's subsidiary, Topsky Info-Tech Holdings Pte Ltd., and its wholly-owned subsidiary Xi'an Softech Co., Ltd., including all entities effectively controlled by Xi'an Softech Co., Ltd. through contractual arrangements and variable business entities (the "Transaction"). The Transaction was closed onAugust 17, 2018.
Upon the closing of the Transaction, the Company, through its wholly-owned subsidiary LK Technology Ltd. ("LK Technology"), gained the rights to deploy Wi-Fi systems on approximately 700 trains in China, including 290 trains in which Wi-Fi systems have already been installed and are currently in operation. The Company also received all rights associated with the core mobile application of technologies held by LK Technology, the Luokung online entertainment and social platform ( the "Luokuang platform"), including APP, a series of supporting software for servers, and Wi-Fi hardware and equipment on the trains. The Luokuang platform incorporates technology covered by 5 patents and about 10 software copyrights, and will serve as a content and service distribution platform tailored for particular travel stages and featuring geographic location and social interaction. The content and services distributed by the Luokuang platform include information, entertainment, travel, e-commerce, OTO, advertisement and marketing features.
On August 20, 2018, the Company completed the change of its name with the BVI Registry of Corporate Affairs to Luokung Technology Corp.
In addition, on August 6, 2018, the Company received approval from Nasdaq in connection with the listing of ordinary shares of Luokung Technology Corp. on The Nasdaq Capital Market. The Company has reserved trading symbol LKCO with Nasdaq.