Long Blockchain Corp. which is formerly known as Long Island Iced Tea corporation, has entered into a merger agreement with the parent company of Stater Global Markets, Stater Blockchain. The companies entered into Letter-of-Intent, with the assets of the UK-based firm including the FCA-regulated brokerage Stater Global Markets.
Commenting on the news to Finance Magnates, the CEO of Stater Blockchain and Stater Global Markets, Ramy Soliman, said: “We plan to work on a range of products for the global financial markets including Smart Settlements and KYC platforms. We will focus on issues that we believe existing market participants face in terms of the current infrastructure and look at ways of working smarter – such as speeding up processes and becoming more cost-effective.”
“The latest developments in our organisation propel us to a whole new level – in essence, we will be a technology incubator for blockchain and we can look at where the inefficiencies are – such as with on-boarding, clearing, and settlement or the current cryptocurrency infrastructure – and can make improvements which impact the industry,” Mr Soliman added.
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Mr Soliman elaborated further on the firm’s direction: “We are based in London, which has a hotbed of finance-oriented blockchain expertise – and we plan to harness that expertise to the benefit of our organization and the wider industry. Our overall vision is to be the leading distributed ledger technology player in finance – and I believe we will have the right team and resources in place to achieve this.”
Letter of Intent Details
According to the letter of intent signed between the companies, a prospective merger would involve an all-stock transaction pursuant to which Long Blockchain would form a wholly-owned subsidiary. The newly created firm would then merge with and into Stater with Stater surviving as a wholly-owned subsidiary of the publicly listed company.
The company’s listing on the NASDAQ will remain unaffected by the listing. Long Blockchain has recently announced its intention to purchase 1,000 Antminer S9 mining rigs with power supply units. The agreement between the firms is expected to complement this previously publicised plan.
Commenting on the news, the CEO of Long Blockchain, Philip Thomas, said: “We are excited to announce this potential milestone event for our company. Stater has been making investments to build its cryptocurrency platform and blockchain solutions, and we look forward to combining our efforts in this transformational partnership.”
“Our ultimate goal is to build a portfolio of investments that touch multiple points in the blockchain ecosystem and this transaction would be an important step in that direction,” Mr Thomas elaborated.
The firms will be seeking approval of the proposed merger in the second quarter of the year.