Nasdaq Delists Iced Tea-Turned-Blockchain Companybr>
The Nasdaq stock exchange has delisted former iced tea manufacturer-turned-blockchain company Long Blockchain Corp. (LBCC), a move that comes months after the company’s price soared following its name change.
LBCC first received a de-list notice from Nasdaq on February 15 for low market capitalization, after which the company appealed the determination and a hearing took place on March 22. The Hearings Panel chose to uphold the de-listing determination, with LBCC’s shares scheduled to be “suspended on the Nasdaq Capital Market at the opening of business on April 12.”
According to the announcement, Long Blockchain’s common stock will be eligible for trading and quotation on the Pink Current Information tier operated by the OTC Markets Group Inc. The company’s trading symbol will remain LBCC. Long Blockchain has stated its intention to “apply for its common stock to be quoted and traded on the OTCQB Market.”
Long Blockchain said it will remain a public company following the de-listing and its shares will continue to trade publicly. The company will continue to make all required SEC filings on Forms 10-K, 10-Q and 8-K, and will remain subject to all SEC rules and regulations applicable to reporting companies under the exchange act.
“The company will continue to maintain an independent Board of Directors with an independent Audit Committee and provide annual financial statements audited by a Public Company Accounting Oversight Board (PCAOB) auditor and unaudited interim financial reports, prepared in accordance with US generally accepted accounting principles (GAAP),” the company said.
The company also said that its transition to the over-the-counter market does not diminish the focus of its efforts to become a leader in blockchain technology. It will continue to seek the acquisition of Hashcove, a UK-based technology company developing blockchain products and applications. In addition, the company will continue to work closely with CASHe and Stater – the two firms in which it recently acquired minority strategic stakes – to create blockchain solutions to enhance their respective technology infrastructures.
In December 2017, Long Blockchain changed its name from Long Island Iced Tea Corp. as part of a corporate shift towards “exploration of and investment in opportunities that leverage the benefits of blockchain technology.” The company’s share price exploded by over 400% in a single day, following the name change.
In January, US Securities and Exchange Commission (SEC) head Jay Clayton warned companies against changing their names in a bid to capitalize upon the hype surrounding blockchain technology. Clayton said the SEC will be watching firms taking on new names and business models to make sure they’re not just trying lure investors eager to jump on the blockchain bandwagon.