Securities & Exchange Commission (SEC) – US’s financial watchdog – has announced revocation of business license of a beverage company called Long Blockchain Corp. The revocation was done upon the failure of the beverage company to fulfill its annual filing requirements for the past three consecutive fiscal years.
It has been announced by SEC that it has revoked business license of a New York based beverage company called Long Blockchain Corp (LBCC). The US financial watchdog apprised that the license has been revoked because the company failed to comply with mandatory requirements.
It was noted by SEC that LBCC had failed to submit its annual filings for the past three consecutive fiscal years. It said that the action has been taken in order to prevent any potential harm to be caused to US investors. SEC was authorized to take this action under the Securities Exchange Act, 1934 (Act), told SEC.
SEC alleged that LBCC changed its name in the past to “LBCC” but it was earlier known as Long Island Iced Tea Corp. The company then also sought permission to run, operate and manage business activity relating to blockchain. However, since the day of blockchain listing till to date, the company has failed to make operation its intended business. But the law states that every business is obligated to submit annual filing even if it is operational or not.
With regard, the company’s stocks, SEC also raised an objection. It noted that the company sought registration of its stocks in accordance with Section 12(b) of the Act. Thereafter the company started to trade its products i.e. securities at the platform of NASDAQ. But later on NASDAQ submitted Form 25 back in June 2018 and decided to delist securities put for trade by LBCC.
For the time being company’s stocks are enlisted with OTC Link which is a company owned and controlled by OTC Markets Group. But, according to SEC, OTC Markets Group too has failed to submit a mandatory form called 10-Q. Yet the date for filing Form Q has expired on 30th September 2018, noted by SEC.
After revocation and noting all the concerns of the SEC, LBCC has decided to settle the matter with SEC. The company has now proposed an offer which it has submitted to SEC for consideration. It was reported that the offer looks fair enough and there is high probability that SEC would accept the proposal.
However, the revocation has become effective since 22nd February 2021 and is still continuing. Resultantly, until and unless the proposal is accepted, the blockchain company cannot resume its normal business functions.
During license cancellation, SEC revoked each and every type of securities provided by LBCC which has severely impacted its business and reputation.
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