Long Blockchain May Have Misled Investors, Nasdaq Says in LetterBy
Stock market’s earlier notice of compliance is revoked
Company says it disagrees with decision and is appealing
Long Blockchain Corp., the iced-tea company that jumped in on the cryptocurrency craze, said it was accused by the Nasdaq of possibly misleading investors.
The unprofitable beverage maker said it “strongly disagrees” with Nasdaq’s assertion and has appealed the decision, according to a filing Wednesday. The latest statement amends a filing from last week in which Long Blockchain announced that Nasdaq threatened it with delisting.
“The notification letter stated that the staff believed that the company made a series of public statements designed to mislead investors and to take advantage of general investor interest in bitcoin and blockchain technology, thereby raising concerns about the company’s suitability for exchange listing,” Long Blockchain said in the new filing.
The company changed its name from Long Island Ice Tea Corp. in December. The renaming, along with the announcement that it was acquiring 1,000 bitcoin-mining machines, brought a temporary surge in market value, which must stay above $35 million for a certain period to comply with Nasdaq’s rules.
In the letter, the Nasdaq also said that it was revoking a Jan. 23 notification that the company had regained market-value compliance.
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