Nasdaq de-lists loss-making Long Blockchain
The company that made global headlines when it changed its name from the Long Island Iced Tea Corp will lose its stock exchange listing on Thursday
The Nasdaq exchange will de-list the shares of Long Blockchain on Thursday. The company made headlines across the world when, in the heady December 2017 days of the Bitcoin price heading toward $20,000, it changed its name from the Long Island Iced Tea Corp to the Long Blockchain Corporation and duly increased its share price by more than 400% to almost $10 a share.
Founded in Farmingdale, Long Island, New York State, in 2011, the company used to produce ready-to-drink iced teas and lemonade under the “Long Island” brand. When it first re-branded it said it would start buying crypto-currency mining machines. It then said it was working on a “blockchain strategy.” Neither initiative produced tangible results.
When the firm announced the de-list decision on Tuesday the share price sat at about $1.10. Nasdaq requires a listed company to hold a market capitalization of above $35 million for 10 consecutive working days. Long Blockchain Corporation’s market capitalization now sits at less than $12 million.
Coincheck reports that Long Blockchain was first served a de-list notice in February, but appealed against it.
“The company appealed this determination,” said a company statement on Tuesday, “and a hearing was held on March 22, 2018. Following this appeal, the Hearings Panel determined to uphold the staff’s decision. Accordingly, trading of the company’s shares will be suspended on the Nasdaq Capital Market at the opening of business on April 12, 2018.”
According to the company’s statement, Long Blockchain will continue to trade in the crypto sector and plans to go ahead with a previously announced acquisition of a UK blockchain company.