The Nasdaq Stock Market has moved to delist shares of Farmingdale-based Long Blockchain Corp., the company said on Wednesday.
The stock of the company, formerly known as Long Island Iced Tea Corp. will “be suspended” from the Nasdaq Capital Market at the open of trading Thursday, the company said in a news release.
The company, whose shares have tumbled in recent weeks amid a decline in the price of bitcoin, the most widely known cryptocurrency, said it intends to apply for its stock to be traded on the OTCQB market for early-stage companies run by the OTC Markets Group Inc.
The stock will be eligible to trade on the Pink Current Information tier on Thursday, the company said.
Long Blockchain shares fell 65 cents, or 37 percent, on Wednesday to close at $1.10.
A February delisting notice from Nasdaq said Long Blockchain had made “public statements designed to mislead investors and to take advantage of general investor interest in bitcoin and blockchain technology,” according to a securities filing by the company.
The February filing said the Nasdaq staff believed that the company’s statements about cryptocurrency and blockchain technology enabled it to “regain compliance” under the Nasdaq Capital Market rule requiring that listed companies maintain a market value of $35 million.
At the time, the company said it “strongly disagrees” with the determination of the Nasdaq staff and filed an appeal. On Tuesday, the company received the final Nasdaq delisting decision.
The company’s stock soared as high as $9.49 in December after it announced it was shifting focus from producing ready-to-drink beverages to businesses involving cryptocurrencies such as bitcoin and blockchain technologies.
The company said Long Blockchain will remain a public company and continue its efforts to develop a business based on blockchain technology.
A blockchain is a distributed digital ledger used in cryptocurrency transactions. Companies also are developing blockchain applications for use in finance, logistics and legal records.
Long Blockchain said it is working toward closing its acquisition of Hashcove, an early stage UK company that is developing blockchain products.