The Nasdaq will delist Long Blockchain Corp., formerly Long Island Iced Tea, due to low market capitalization.
Former soft drinks manufacturer-turned-Blockchain development company, Long Blockchain Corp., will be delisted from the Nasdaq Stock Market (Nasdaq), according to an announcement April 10.
Long Blockchain Corp. (LBCC) first received a delist notice from Nasdaq on Feb. 15 for low market capitalization, after which the company appealed the determination and a hearing took place on March 22. The Nasdaq Hearings Panel ruled against Long Blockchain Corp. and their shares will be suspended from the Nasdaq Capital Market starting April 12.
According to the announcement the LBCC will qualify to place its shares on the Pink Current Information tier operated by the OTC Markets Group Inc. The company reportedly intends to file an application for its common stock to be quoted and traded on the OTCQB Market.
After the delisting, LBCC will remain a public company with its shares trading publicly, following all required filings and regulations:
“LBCC will remain a public company following the delisting and its shares will continue to trade publicly. … 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 U.S. generally accepted accounting principles (GAAP).”
LBCC mentions in the announcement that despite the shift to the “over-the-counter” market, the company is still pursuing its goal of becoming a leader in Blockchain technology. It will continue to seek the acquisition of Hashcove, a UK-based technology company developing Blockchain products and applications.
LBCC entered the Blockchain world amid some controversy as, following a rebranding from its original monicker of “Long Island Iced Tea” to “Long Blockchain Corp.”, its stock price jumped 500 percent.
In January, US Securities and Exchanges Commission (SEC) chairman Jay Clayton remarked on the phenomenon of companies simply adding the word ‘Blockchain’ to their name to “capitalize on the perceived promise” of doing so.