Long Blockchain Corporation, the former beverage company whose sudden pivot to crypto captured Wall Streetâs attention (and Nasdaqâs ire) during the 2017 bull run saw its shares delisted by the U.S. Securities and Exchange Commission (SEC) Monday after failing to file financial documents.
In an administrative order the SEC revoked registration of Long Blockchainâs shares, eliminating the possibility of trading shares in the one-time tea makers among U.S. investors. That ability had already been severely restricted by Nasdaqâs February 2018 decision to delist the New York company for allegedly misleading investors.
The order ends a public markets saga that lives on in investorsâ memory as a textbook instance of opportunistic rebranding. When the company formerly known as Long Island Iced Tea Corp. rechristened itself âLong Blockchain Corp in December 2017, investors responded by pouring into its shares, spiking the value by over 500%.â
Never mind the fact that Long Blockchain Corp. initiated its rebranding without explaining exactly how it would embrace blockchain technology or move away from summertime beverages. A subsequent effort to buy bitcoin miners was abandoned in less than a month, setting the stage for Nasdaq to nix trading and relegating LBCC to the OTC markets.
âIts blockchain business never became operational,â SEC said in the Monday order.