Iced Tea Turned Blockchain Company Warned on Possible Nasdaq Delistingbr>
Long Blockchain, the iced-tea company that pivoted to blockchain, has been notified by Nasdaq that it may be delisted.
The New Jersey-based Long Blockchain is being cited because the company’s market capitalization is too low. It must meet a steady threshold of $35 million, a figure it has been below for the last month. Long Blockchain was formerly known as Long Island Iced Tea, but changed its name last December and announced it would diversify from beverages into cryptocurrency.
The move prompted the US Securities and Exchange Commission (SEC) head Jay Clayton to warn companies against changing their names in a bid to capitalize upon the hype surrounding blockchain technology.
A number of companies in recent months have launched blockchain initiatives to take advantage of the cryptocurrency mania. Some companies have rebranded themselves completely, adding blockchain directly to their name. In some cases, the companies’ share prices soared in the US, Germany, and Hong Kong after announcing they are moving to develop products or services around the tech.
In Long Blockchain’s case, the company disclosed the notice in an SEC filing last Thursday and plans to appeal the decision. Long Blockchain’s market cap has been as high as $67 million, but the company has failed to gain much traction and has abandoned plans to operate a crypto-mining business.
Shamyl Malik has been appointed chief executive officer, effective immediately. Malik brings over a decade of financial technology experience, having held positions at Morgan Stanley, Voltaire Capital and Citibank.