Long Blockchain, the company previously named Long Island Iced Tea, has reached an agreement to sell its beverage business to Canadian firm ECC2 Ventures. The news of the deal comes via a document filed yesterday with the United States Securities and Exchange Commission (SEC)
Early last year, the company announced they would be rebranding from Long Island Iced Tea to Long Blockchain, stating that it was hoping to raise funds to purchase Bitcoin miners. After this move, shares (LBCC) promptly jumped 500%. However, in April, the stock was delisted from NASDAQ due to a low market cap that did not meet its minimum requirements.
In August, the company announced the next step in its shifting strategy — to use distributed ledger technology to focus on loyalty programs.
Said then-new CEO Andy Shape in a press release:
“Consumer brands and corporations realize that loyal customers not only purchase more goods but that they also purchase more often. Creating stronger loyalty with customers who are engaged in loyalty programs through advancements in technology is the key to future growth and massive scalability.”
Now the company will move its focus fully back to blockchain, in the form of Bitcoin mining. The iced tea arm of the business will be sold in a cash and stock deal. According to a report by Newsday, “Long Blockchain would get $500,000 (Canadian) and 9.2 million shares of ECC after that company completes a share consolidation.”
In August of last year, Long Blockchain was issued a subpoena by the SEC. Originally dated July 10th, the subpoena requested documents from the company, however Long Blockchain declined to comment any further, except to say, “The company cannot predict or determine whether any proceeding may be instituted by the SEC in connection with the subpoena or the outcome of any proceeding that may be instituted.”