The Long Island Iced Tea company was doing just over $1 million in revenues per quarter, bleeding out cash, losing money for shareholders hand over fist -- down 42% for the year. So they managed to take a short cut around all of those issues and simply rename the company to Long Blockchain Corp. and this has resulted in shares rising over 500% in pre market chicanery.
If you missed the dot com era, pay attention to these details, because this is exactly what was happening in 1999 -- leading up to the tumultuous collapse in 2000.
LTEA press release:
The co announced that the parent company is shifting its primary corporate focus towards the exploration of and investment in opportunities that leverage the benefits of blockchain technology. In connection with the shift in strategic direction, the Company has approved changing its name from "Long Island Iced Tea Corp." to "Long Blockchain Corp." and has reserved the web domain www.longblockchain.com. The Company intends to request Nasdaq to change its trading symbol in connection with the name change. The Company will continue to operate Long Island Brand Beverages, LLC as a wholly-owned subsidiary and maintain the focus of this business on the ready-to-drink segment of the beverage industry, specifically, premium, ‘better-for-you' brands marketed at an affordable price.
In conjunction with the shift in business strategy, the Company has submitted a request to the Securities and Exchange Commission to withdraw its previously filed S-1 registration statement relating to a proposed underwritten public offering, which was filed on November 11, 2017.
The Company is already in the preliminary stages of evaluating specific opportunities involving blockchain technology. The discussions are only in the preliminary stages but indicate the areas of focus for the Company. These opportunities include potential partnerships, investments or acquisitions involving:
A blockchain software developer building blockchain infrastructure for the financial services industry
A London-based FCA regulated, institutional provider of FX services that is building multiple blockchain and digital crypto currency technology solutions for global financial markets
A new smart contract platform for building decentralized applications that provides scalability beyond currently available options
And a word from the CEO:
Philip Thomas, Chief Executive Officer of the Company, commented, “We view advances in blockchain technology as a once-in-a-generation opportunity, and have made the decision to pivot our business strategy in order to pursue opportunities in this evolving industry. We are committed to enhancing shareholder value and believe that our new focus is the best path towards this goal. We will, in the coming weeks and months, be taking a series of steps related to our efforts to assemble a world-class team of industry professionals to help us realize this vision. We are pursuing our new direction in a thoughtful and deliberate manner.”
With just 4 million shares in the float and market cap under $30 million, expect LTEA to trade like a god damned carnival today.