Former beverage manufacturer-turned-Blockchain development company, Long Blockchain Corp. was delisted from NASDAQ on Thursday after the company failed to keep its market value above the required $35 million minimum.
The announcement comes just mere weeks after the firm made an investment in Stater Global Markets worth about $3 million.
With the deal between the companies is being transacted in shares of Long Blockchain, the corresponding dollar amount has been materially affected by the latest news. On Thursday, the value of a single share of the company was worth about a third of the amount which was discussed by the companies in March.
Stater Blockchain operates the FCA-regulated prime of prime brokerage Stater Global Markets. The company announced that it is exploring the implementation of blockchain technologies into financial services after committing to a merger deal with Long Blockchain.
The letter of intent, which the companies signed, was transformed into an investment agreement on part of Long Blockchain. The company has become famous after renaming itself from Long Island Ice Tea in December 2017. A subsequent spike higher in the value of the firm lasted only as long as the price of Bitcoin was high.
The firm previously committed to purchasing 1000 Bitcoin mining devices, a plan that was put on hold after the announcement of the merger between Stater Blockchain and Long Blockchain.
Listing on OTCQB
After being dropped from NASDAQ, shares of the company tanked to their lowest levels since 2013. The long demise of the beverage company continued despite its pivot to blockchain technologies which it orchestrated in order to remain listed on the NASDAQ.
Following the news of the delisting, trading in the shares of the company will continue on the Pink Current Information tier which is operated by OTC Markets. Stocks that are trading on that market are typically referred to as “pink sheets”.
The Company committed to continuing filing SEC filings on Forms 10-K, 10-Q, and 8-K, and will be monitored under existing SEC regulations.
Long Blockchain will continue its efforts to close its acquisition of Hashcove, an early stage UK-based technology company which is developing distributed ledger technology products. The company is working on tokenized platforms, crypto-exchanges and wallets, smart contracts for initial coin offerings (ICO), know-your-customer (KYC) and financial clearing technology on blockchain.
Aside from Stater Blockchain, Long Blockchain is also involved in short-term digital lending to millennials in India, via the firm CASHe.