What happened
Shares of Luokung Technology (NASDAQ: LKCO) extended their recent torrid gains on Tuesday. By the close of trading, the provider of location-based services for self-driving vehicles had delivered gains to investors of more than 88%.
So what
Luokung's stock price is up a staggering 320% since Feb. 4. On that day, Luokung announced that its acquisition candidate, eMapgo Technologies, agreed to partner with electric vehicle maker Beijing New Energy Automobile (also known as BAIC BJEV) to develop mapping services for autonomous driving projects.
Luokung Technology's share price has soared since it partnered with a major Chinese EV maker. Image source: Getty Images.
"We are very pleased to begin working with BAIC BJEV on projects that leverage our HD Map capabilities with their manufacturing and brand awareness throughout China for the development of autonomous driving," eMapgo CEO Darwin Lu said in a press release announcing the deal. "We believe this is the future of the industry and want to remain well-positioned to take advantage as further developments occur in China's infrastructure."
Now what
News of the partnership has helped Luokung bolster its balance sheet via share sales. On Feb. 10, Luokung closed on a $5 million direct offering to institutional investors. Today, the company said it closed on a $15 million stock and warrant sale. This newfound cash should help Luokung advance the development of its mapping technology.
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