When the Long Island Tea Company changed its name to Long Blockchain Corp. (NASDAQ: LBCC) last December, the share price shot up 300%. But gravity is too strong a force to be overcome with nothing other than new lipstick.
Now the maker of iced tea, lemonade, and blockchain technology is again threatened with delisting from the Nasdaq. According to a Friday filing with the U.S. Securities and Exchange Commission (SEC) the company received on Thursday a delisting notice from the Nasdaq for failing to maintain a minimum market value of $35 million.
At nearly the peak of the digital currency euphoria in early January, Long Blockchain said it planned to purchase 1,000 bitcoin mining machines that CEO Philip Thomas said “places us on a path to generating blockchain-related revenue through the accumulation of bitcoin.”
On February 5, Long Blockchain said it would not purchase the mining machines. Instead it would focus on a proposed merger with a technology company that is “developing and deploying globally scalable blockchain technology solutions” in the financial markets and exploring other opportunities.
The Nasdaq has given the company until February 22 to appeal the decision and Long Blockchain noted that it intends to take advantage of the option. That intention and the company’s planned appeal of the decision allow the company’s stock to continue trading for now.
If Long Blockchain’s appeal is granted, the company’s market value will need to reach at minimum of $35 million and remain at that level for at least 10 consecutive trading days by April 9.
When Long Blockchain announced its name change, bitcoin traded at around $15,600 according to Coindesk. The last price on Friday was around $10,200 and the low point for the digital currency was around $6,900 on February 5.
Long Blockchain stock soared from $2.44 to $9.49 the day it announced its name change. Since then the closest the stock has gotten to that level is $7.65 and shares closed Friday at $3.23. At that price, the company’s market cap is around $37.5 million.