A new tech outfit called Long Blockchain Corp (LBCC) which is best known for its unusual rebrand from a regional beverage maker has signed a letter of intent with Vancouver’s-based investment company ECC Ventures 2 Corp to sell off its iced tea and lemonade subsidiary, Long Island Brand Beverages LLC.
Long Blockchain, as a part of the sale, will receive 9.2 million shares in ECC and $500,000 Canadian dollars after consolidation, according to an ECC news release revealed last Thursday. The company will then likely to change its name to ‘Long Island Beverages’. Being a reverse merger, the new beverage company instead of getting listed on the Toronto Stock Exchange will be listed on the TSX Venture Exchange.
Long Island Brand Beverages‘ parent company is now focusing to restructure its capabilities and put picnic baskets in the past. On 18th Jan 2019, three days after the sale was arranged, the company entered into a restated loan agreement with Court Cavendish Ltd. Court Cavendish Ltd which is a UK-based company is said to deliver financial and operational turnarounds of multi-site Social Care and Health Care Organizations.”
It is believed that Long Blockchain Corp, under that agreement, converted $1,550,000 of principal owed to Cavendish under its existing loan. In addition to that, the company also converted accrued interest that valued at 20 cents per share into 12.7 million shares in the company.
To cover the costs of the negotiation and execution of the Restated Agreement, the company also paid the lender an additional sum of $40,000. Despite such huge transactions, Long Blockchain still owes $740,000 to Cavendish, with interest assessed at an annual rate of 12.5 percent. Now, it is expected that with such healthy transfers, some of that sum will be paid with the earnings from the sale of Long Island Brand Beverages, though the loan amount to remain un-matured until 21st December.
In December 2017, the Long Blockchain started to transform from a drink company and mentioned that its beverage business would remain as a subsidiary. The company, however, after 14th December 2017 decided to stop updating its social media account and add blogs on its website after 12th May 2017. Being a newcomer in the market, the new company might not have much to offer to its traders & investors.
Last July, Long Blockchain landed on the radar of the Securities and Exchange Commission, receiving a subpoena from the regulator. Since then, the company has made only one announcement, receiving scant coverage for a joint venture to “scale Entrex’s industry-leading the blockchain-enabled alternative trading market.”