Shares of Luokung Technology (LKCO 2.92%) were climbing today after the Chinese mapping-technology company got a favorable court ruling in U.S. District Court this morning. As a result, the stock finished the session up 13.5%.
This morning, Luokung said that its motion for preliminary injunction was granted by the U.S. District Court for the District of Columbia. As a result of the ruling, the Department of Defense (DoD) will be prohibited from enforcing its designation of Luokung as an agent of the Chinese communist military. According to an executive order related to the DoD policy, Luokung was set to be delisted by the Nasdaq on Saturday.
Following the court ruling, Luokung asked the Nasdaq to withdraw its delisting. The Nasdaq complied, allowing the Chinese stock to continue trading on its exchange.
Luokung had originally received a delisting notice from the Nasdaq on March 11, saying it would be delisted on May 8 in response to a letter from the Department of Treasury's Office of Foreign Assets Control. Given the May 8 deadline, the court ruling comes just in time to keep Luokung on the Nasdaq.
The stock has been highly volatile this year, surging when it announced its acquisition of eMapGo Technologies in February, giving it exposure to the fast-growing electric-vehicle industry. With the delisting issue seemingly resolved, investors can now turn their attention to the integration of eMapGo, since the deal closed in March.