Shares of Hicksville beverage maker Long Island Iced Tea Corp. began trading on the Nasdaq Capital Market on Friday after the company raised $6.9 million in a stock offering.
Executives of the company, whose stock had been trading over-the-counter, rang the closing bell Friday afternoon at the Nasdaq MarketSite in Times Square.
Shares of the company, which retained its “LTEA” stock ticker, fell 13 percent to close at $5.95.
Chief executive Philip Thomas said that a decline in stock price was anticipated because shares were being sold in the stock offering for $5.50, lower than their recent trading price.
“You can expect that would put some downward pressure on it,” he said in a telephone interview.
Thomas said proceeds from the sale of about 1.2 million shares would be used for working capital and business expansion. Earlier filings with the Securities and Exchange Commission said the company planned to raise more than $10 million from the stock offering.
The company makes ready-to-drink iced tea sold through school districts, Wakefern Food Corp., which is a cooperative of companies that operate ShopRite and Price Rite supermarkets, and other retail outlets.
The stock offering was run by Network 1 Securities headquartered in Red Bank, New Jersey, and Alexander Capital LP, based in Manhattan.
Long Island Iced Tea was launched in July 2011 and is primarily distributed in the Northeast. For the quarter ended March 31 the company, with 19 full-time and three part-time employees, reported net sales of $508,169, almost double the prior year’s $264,722.
The Nasdaq Capital Market, which caters to small-capitalization companies, is one of three tiers of the Nasdaq Stock Market.