Long Blockchain CEO Philip Thomas in an undated photo. Photo Credit: Long Blockchain
Long Blockchain Corp., the Farmingdale company whose shares initially soared after it changed its name from Long Island Iced Tea Corp. in December, has received a new delisting notice from the Nasdaq Stock Market.
The company disclosed the delisting notice in a government filing late Friday and said it would file an appeal by the Feb. 22 deadline. To regain compliance and continue trading on the Nasdaq Capital Market, Long Blockchain’s stock market value must remain at $35 million for at least 10 consecutive days.
The Nasdaq had revoked a previous delisting notice disclosed in October after the company’s market value rose in the wake of its announced plan to shift its business model to cryptocurrencies and blockchain technology.
The company’s shares have slumped in recent weeks after an aborted stock offering and a decline in the value of bitcoin, the most popularly known cryptocurrency.
Bitcoin and other types of cryptocurrencies are digital currencies that are not controlled by a centralized bank or government and allow users to spend money anonymously. The coins are created by users who “mine” them by lending computing power to verify other users’ transactions. They receive coins in exchange. A blockchain is a decentralized digital ledger of every transaction in the currency.
On Friday, Long Blockchain fell 11 percent to $3.23, bringing its stock market value to about $33 million. Its shares reached an intraday high of $9.49 on the day it announced its name change to Long Blockchain.
The price of bitcoin has recovered to about $11,000 in recent days but remains far below its high reached in January of almost $20,000.
On Friday, the Securities and Exchange Commission suspended trading in three companies “amid questions surrounding...statements they made about the acquisition of cryptocurrency and blockchain technology-related assets.”
Several companies, including Eastman Kodak Co., have seen their stock prices spike after they announced initiatives related to cryptocurrencies and blockchain technology.
The Nasdaq Capital Market, a platform for small capitalization companies, is one of three tiers of the Nasdaq Stock Market.
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
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