Former beverage producer Long Blockchain is once again at risk of being delisted from the Nasdaq, mere months after making its questionable pivot into the cryptocurrency ecosystem.
According to a document filed with the US Securities and Exchange Commission (SEC) and dated Feb. 16, Long Blockchain — formerly known as Long Island Iced Tea — received a letter from the Nasdaq stating that the company’s stock would be delisted from the exchange.
From the filing:
“On February 15, 2018, Long Blockchain Corp. (the “Company”) received a notice from the Listing Qualifications Department of The Nasdaq Stock Market (“Nasdaq”) stating that Nasdaq had determined to delist the Company’s securities under the discretionary authority granted to Nasdaq pursuant to Nasdaq Rule 5101. The notification letter also stated that Nasdaq was revoking its prior notification to the Company that it had regained compliance with the market value of listed securities requirement of Rule 5550(b)(2) (the “MVLS Rule”).”
As CCN.com reported, the company had rebranded as Long Blockchain in December, which led to a 300 percent surge in the firm’s share price. This, coincidentally, raised the firm’s market cap above the Nasdaq’s minimum $35 million threshold and allowed the company to narrowly avoid being delisted.
However, the subsequent cryptocurrency market downturn hit Long Blockchain and other cryptocurrency-branded firms hard, and the company’s stock had plunged from $7 in December to below $3 by the end of January.
The stock slipped so far, in fact, that — now valued at just $30.5 million — Long Blockchain once again finds its place on the Nasdaq in jeopardy.
The document, which was signed by Long Blockchain CEO Philip Thomas, stated that the company planned to appeal the ruling, and, if the appeal is approved, the firm would have until April 9 to raise its market cap above $35 million for 10 consecutive days.
“If the Company’s appeal is approved, the Company will still need to regain compliance with the MVLS Rule by April 9, 2018. In order to regain compliance, the market value of the Company’s listed securities must remain at $35 million or more for a minimum of ten consecutive business days. If the Company does not regain compliance by such date, the Company’s securities would again be subject to potential delisting,” Long Blockchain said in the filing.
A buzzword-filled rebrand saved the company from delisting before, but it is unclear whether Long Blockchain has any more tricks left up its sleeve. At one point, the firm had announced a plan to buy 1,000 Bitcoin mining rigs, but this purchase was abruptly called off several weeks later.
Featured image from Shutterstock.