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Long Blockchain says it will appeal Nasdaq delisting notice

To regain compliance, the company, formerly named Long Island Iced Tea, must keep its market value at or above $35M for 10 consecutive days.

Long Blockchain CEO Philip Thomas in an undated

Long Blockchain CEO Philip Thomas in an undated photo. Photo Credit: Long Blockchain

Long Blockchain Corp., the Farmingdale company whose shares initially soared after it changed its name from Long Island Iced Tea Corp. in December, has received a new delisting notice from the Nasdaq Stock Market.

The company disclosed the delisting notice in a government filing late Friday and said it would file an appeal by the deadline this Thursday. To regain compliance and continue trading on the Nasdaq Capital Market, Long Blockchain’s stock market value must remain at or above $35 million for at least 10 consecutive days.

Philip Thomas, chief executive of Long Blockchain, did not respond to a telephone call seeking comment on Monday.

The Nasdaq had revoked a previous delisting notice issued in October after the company’s market value rose in the wake of its announced plan to shift its business model to cryptocurrencies and blockchain technology.

Bitcoin and other types of cryptocurrencies are digital currencies that are not controlled by a centralized bank or government and allow users to spend money anonymously. The coins are created by users who “mine” them by lending computing power to verify other users’ transactions. They receive coins in exchange. A blockchain is a decentralized digital ledger of every transaction in the currency.

Long Blockchain’s shares have slumped in recent weeks after an aborted stock offering, a decision to abandon a plan to acquire 1,000 specialized computers used to mine bitcoin and a decline in the value of bitcoin, the most popularly known cryptocurrency.

In January, Long Blockchain signed a letter of intent to merge with Stater Blockchain Ltd., a closely held United Kingdom financial technology company, in an all-stock transaction. Terms of that deal, under which Stater would become a wholly owned subsidiary of Long Blockchain, were not disclosed.

U.S. stock markets are closed Monday in observance of Presidents Day, and will reopen Tuesday. On Friday, Long Blockchain fell 11 percent to $3.23, bringing its stock market value to about $33 million. Its shares reached an intraday high of $9.49 on the day it announced its name change to Long Blockchain.

The price of bitcoin has recovered to about $11,000 in recent days but remains far below its high reached in January of almost $20,000.

On Friday, the Securities and Exchange Commission suspended trading in three companies “amid questions surrounding . . . statements they made about the acquisition of cryptocurrency and blockchain technology-related assets.”

Several companies, including Eastman Kodak Co., have seen their stock prices spike after they announced initiatives related to cryptocurrencies and blockchain technology.

Long Blockchain’s Long Island Brand Beverages LLC subsidiary continues as a producer of ready-to-drink iced tea despite the new corporate focus.

The Nasdaq Capital Market, a platform for small capitalization companies, is one of three tiers of the Nasdaq Stock Market.

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