Long Blockchain Corp., a Long Island company that made headlines by joining the cryptocurrency craze in 2017, has reached a tentative deal to be absorbed into a Massachusetts promotional products distributor.<\/p>\n
Financial terms of the nonbinding deal announced Monday were not disclosed.<\/p>\n
Andy Shape, chief executive of Long Blockchain and president of the distributor, Quincy-based Stran & Company Inc., said the companies hope to close the deal by year's end.<\/p>\n
In December 2017, Farmingdale-based Long Island Iced Tea Corp. announced it was changing its name to Long Blockchain and would focus on the technology behind the digital currency bitcoin.<\/p>\n
The companys stock soared as high as $9.49 after the announcement, but the pricehas plummeted along with the price of bitcoin, the most prominent cryptocurrency, which peaked at around $20,000.<\/p>\n
On Tuesday afternoon, Long Blockchain shares were trading at 19 cents, up 7.2 percent, while bitcoin was trading at about $9,370.<\/p>\n
Shape said privately held Stran would enter the public markets through the merger with Long Blockchain, which trades over the counter.<\/p>\n
\"We're trying to get a definitive agreement signed within the next few weeks,\" said Shape.<\/p>\n
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He said the deal requires approval of Long Blockchain's board of directors, but does not need a shareholder vote. Long Blockchain's largest shareholder is U.K. investment firm Court Cavendish Ltd., with about 45.3 percent of shares outstanding, according to Bloomberg's compilation of government filings.<\/p>\n
Stran, which operates under the name Stran Promotional Solutions, has more than 50 full-time employees and provides corporate clients with custom displays and promotional products.<\/p>\n
For instance, Stran, founded 25 years ago, is providing ponchos for Sunday's TCS New York City Marathon bearing the imprint of the event sponsor, Tata Consultancy Services Ltd., Shape said.<\/p>\n
In September, Long Blockchain announced a \"definitive agreement\" to sell the Long Island Brand Beverage LLC unit to Vancouver, Canada, investment firm ECC Ventures 2 Corp. for stock and $500,000 Canadian.<\/p>\n
After the company adopted the Long Blockchain name, its iced tea business became a subsidiary.<\/p>\n
In its most recent financial report, for the quarter ended Sept.30, 2018, Long Blockchainposted a net loss of $742,642 on revenue of $827,146.<\/p>\n
Scott Ackerman, CEO of ECC Ventures 2 and president and CEO of Vancouver-based Emprise Capital Corp., is expected to join the board of the iced tea company once the deal closes.<\/p>\n
In a telephone call Tuesday, Ackerman said he was unable to discuss future plans for the Long Island Iced Tea business until the deal closes.<\/p>\n
Bitcoin and other types of cryptocurrencies are digital currencies that are not controlled by a centralized bank or government and allow users to spend money anonymously.<\/p>\n
Facebook has been seeking partners to join in the launch of its own cryptocurrency, Libra. Unlike bitcoin, Libra would be backed by a basket of currencies and debt securities.<\/p>\n
In March 2018, HBOs Last Week Tonight With John Oliver. lampooned Long Blockchain in a segment about companies that added \"blockchain\" to their name in an effort to get a boost in their stock prices.<\/p>\n
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.<\/p>\n
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