Long Blockchain Is At Risk for Exchange Removal Again

Long Blockchain, the beverage company-turned-crypto-firm, is facing a delisting from the Nasdaq stock exchange, public records show.

The reason lies in Long Blockchain’s sliding stock price, which rose to nearly $7 in December after a strong market response following its crypto-pivot. Now trading below $4, the company’s press-time market capitalization of $33.01 million (per data from Google) means that it runs afoul of Nasdaq’s rules requiring that a listed firm’s  market capitalization remain above $35 million for ten business days in a row.

In a filing with the U.S. Securities and Exchange Commission (SEC) dated Feb. 15, Long Blockchain announced it would appeal the move by Feb. 22. If it is successful, the company has until April 9 to maintain a market value of $35 million.

“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 firm wrote.

How that process will play out remains to be seen.

The company had already been warned of a possible delisting in October, a move that came just over two months prior to announcing its pivot and accompanying name change.

In the time since the shift toward blockchain, the company has announced and canceled a plan to purchase 1,000 bitcoin miners. In order to fund its purchase, the company also announced a stock sale to raise $4.2 million over a nearly four-week period. This sale was called off a week later, but it remains unclear how much the company raised.

Stock market chart image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.

Comments

comments

Filed in: Bitcoin Buzz Tags: ,

You might like:

South Korea Legitimizes Blockchain Industry With Major New Classification Standards South Korea Legitimizes Blockchain Industry With Major New Classification Standards
The History of Tezos: The Infamous ICO Trying to Rebound Amidst Lawsuits and Disputes The History of Tezos: The Infamous ICO Trying to Rebound Amidst Lawsuits and Disputes
BIS Chief Bashes Cryptocurrency Again in Scathing Review of Its ‘Failure’ as Money BIS Chief Bashes Cryptocurrency Again in Scathing Review of Its ‘Failure’ as Money
Former Jefferies Asia CEO to Lead $1 Billion EOS VC Arm Former Jefferies Asia CEO to Lead $1 Billion EOS VC Arm
IBM Signs $740 Million Deal With Australian Gov’t to Use Blockchain for Data Security IBM Signs $740 Million Deal With Australian Gov’t to Use Blockchain for Data Security
Deadline for Implementing Indian Central Bank’s Ban on Crypto Dealings Ends Deadline for Implementing Indian Central Bank’s Ban on Crypto Dealings Ends
Collectable Crypto Game Introduces Personalized Artist-Designed Avatars Collectable Crypto Game Introduces Personalized Artist-Designed Avatars
Immutability in Doubt: Do We Need to Protect Blockchain Data? Immutability in Doubt: Do We Need to Protect Blockchain Data?
© 2018 Virtual Mining Bitcoin News. All rights reserved. XHTML / CSS Valid.