Nasdaq will delist the shares of Long Blockchain on Thursday, a move that comes months after the company’s price soared following a name change and focus on blockchain.
Subsequent disclosures revealed that Nasdaq believed Long Blockchain wasn’t being forthright with investors – a determination the company sharply disputed in the same letter, published in February.
“The notification letter stated that the staff believed that the Company made a series of public statements designed to mislead investors and to take advantage of general investor interest in bitcoin and blockchain technology, thereby raising concerns about the company’s suitability for exchange listing,” the company said at the time. “The company strongly disagrees with the staff’s determination and, accordingly, has appealed to a Hearings Panel.”
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Long Blockchain Name Change
According to Nasdaq, “Long Blockchain’s shares dropped 65 cents, or 37%, to $1.10 Wednesday, putting the firm’s market capitalization at $12.6 million. The firm was valued at nearly $70 million in late December after it announced it was switching its name and pivoting to focus on blockchain while a subsidiary continued to sell tea. A visit to the company’s Long Island office right after it changed its name showed that it operates a 10,000 square-foot supply warehouse used for distribution of its nonalcoholic beverages.”
A visit to the company’s Long Island office right after it changed its name showed that it operates a 10,000 square-foot supply warehouse used for distribution of its nonalcoholic beverages.
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Blockchain Stocks Hurt
Shares of the firm climbed 183% right after the name change, but in recent months, a drop in the price of bitcoin and other cryptocurrencies and the prospect of increased regulation have hurt blockchain stocks.
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).”
Long Blockchain hasn’t been able to keep its market value above the exchange’s $35 million minimum requirement and declined to comment.
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