Long Blockchain, formally known as Long Island Iced Tea Corporation, has announced that it will sell its drinks business to EC22 Ventures Corp and plans to completely refocus on blockchain technology, in the Securities Exchange Commission (SEC) filing dated March 6, 2019.
We all know that there are times where a company comes to a crossroads and has to decide how it will proceed to profit in an ever-changing world of emerging technologies and fickle consumers. It appears as though a company that was previously focused on the iced tea industry is now looking to pivot and make blockchain technology their central focus. Interestingly enough, this is not the first time that they have considered pivoting towards the sector.
A Full Pivot
Many cryptocurrency investors are focused on the long-term ways that blockchain can improve the world, rather than focusing on short-term crypto gains.
However, that didn’t stop various companies from re-focusing on blockchain or cryptocurrency during Bitcoin’s massive bull run in late 2017. One example was a UK gaming company Veltyco, and their stock price spiked considerably after announcing that it was exploring “discussions with blockchain and cryptocurrency providers.”
One company that infamously did this was none other than a company called the Long Island Iced Tea Corporation in December 2017. Specifically, the company’s shares rose over 400 percent after announcing that they were pivoting to blockchain. The company was still planning on selling its drinks, named after the famous cocktail.
However, the company now plans on selling its drinks business to focus on blockchain entirely.
Long Blockchain, formerly known as Long Island Iced Tea Corporation, is based in Farmingdale, Long Island, and they have made ready-to-drink lemonade and iced tea products for several years.
After the massive rise in share price, the Securities Exchange Commission (SEC) stepped in to investigate in 2018. At the time of the subpoena, the company had a market capitalization of less than $5 million, which is less than 1/10th of the market capitalization of the company in December 2017.
The company has reached a deal with EC22 Ventures Corp, which is based in Canada and involves a combination of both cash and shares.
EC22 is seeking to raise $2 million for the transaction, as well. The deal is not completed, but a letter of intent is officially in place. Shares of Long Blockchain currently trade at 34 cents, as of press time.