Riot Blockchain Subpoenaed by SEC, May Be Delisted from Nasdaq

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Biotech-turned-cryptocurrency corporate Rebel Blockchain has won a subpoena from the USA Securities and Trade Fee (SEC) and is also delisted from the Nasdaq.

The Colorado-based company, which attracted headlines final yr following its surprising pivot into the cryptocurrency house, stated in a brand new public submitting that the SEC is “asking for positive data from the Corporate” and that it intends to agree to the inquiry.

“On April 9, 2018, the Corporate won a subpoena from the SEC asking for positive data from the Corporate,” Rebel Blockchain stated within the submitting, including that it intends to “totally cooperate” with the SEC’s request. “As a part of its overview of the Corporate’s public filings, the Securities and Trade Fee (“SEC”) has inquired about positive of the Corporate’s property’ classification as, and quantity of, conceivable Funding Corporate property.”

“The Corporate believes that many firms engaged in blockchain and cryptocurrency companies have won subpoenas from the SEC which items an extra business possibility. The life of an investigation of the Corporate in particular and the business usually can have a materially antagonistic impact at the Corporate, its trade or operations, and the business as an entire,” the corporate added.

Somewhere else within the document, Rebel Blockchain stated every other vital trade possibility — it will face delisting from the Nasdaq Inventory Marketplace, partially because of its failure to carry an annual shareholders’ assembly in a well timed method.

“With a purpose to take care of our NASDAQ list, we should fulfill the necessities of a plan of compliance that we submitted to, and was once authorised by means of, NASDAQ. That plan contemplates, amongst different issues, keeping our 2018 annual assembly of shareholders no later than Might 15, 2018,” Rebel Blockchain wrote, including that it has struggled to gather the quorum of shareholders required to carry a vote.

Lengthy Blockchain, every other corporate that made a doubtful cryptocurrency pivot right through final yr’s marketplace run-up, was once not too long ago delisted from the Nasdaq below a provision that permits the trade operator to take away firms that it believes have engaged in unethical trade practices.

Rebel Blockchain stocks traded down at the information of the SEC probe and possible Nasdaq delisting, falling five p.c to $6.91 after buying and selling opened on Wednesday. That still represents an 85 p.c plunge from the inventory’s 52-week prime, which peaked at $46.20 in mid-December.

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Nasdaq Will Delist Former Beverage Company Long Blockchain Corp.

Former comfortable beverages manufacturer-turned-Blockchain building corporate, Lengthy Blockchain Corp., might be delisted from the Nasdaq Inventory Marketplace (Nasdaq), in line with an announcement ^( April 10.
Lengthy Blockchain Corp. (LBCC) first gained a delist realize from Nasdaq on Feb. 15 for low marketplace capitalization, and then the corporate appealed the resolution and a listening to came about on March 22. The Nasdaq Hearings Panel dominated towards Lengthy Blockchain Corp. and their stocks might be suspended from the Nasdaq Capital Marketplace beginning April 12.
In step with the announcement the LBCC will qualify to put its stocks at the Purple Present Data tier operated by way of the OTC Markets Workforce Inc. The corporate reportedly intends to report an software for its not unusual inventory to be quoted and traded at the OTCQB Marketplace.
After the delisting, LBCC will stay a public corporate with its stocks buying and selling publicly, following all required filings and laws:
“LBCC will stay a public corporate following the delisting and its stocks will proceed to business publicly. … The Corporate will proceed to deal with an unbiased Board of Administrators with an unbiased Audit Committee and supply annual monetary statements audited by way of a Public Corporate Accounting Oversight Board (PCAOB) auditor and unaudited period in-between monetary stories, ready in keeping with U.S. usually authorised accounting rules (GAAP).”
LBCC mentions within the announcement that regardless of the shift to the “over the counter ^(” marketplace, the corporate continues to be pursuing its objective of changing into a pace-setter in Blockchain generation. It is going to proceed to hunt the purchase of Hashcove, a UK-based generation corporate growing Blockchain merchandise and programs.
LBCC entered the Blockchain global amid some controversy as, following a rebranding from its authentic monicker of “Lengthy Island Iced Tea” to “Lengthy Blockchain Corp.”, its inventory worth jumped 500 %.
In January, US ^( Securities and Exchanges Fee ^( (SEC) chairman Jay Clayton remarked at the phenomenon ^( of businesses merely including the phrase ‘Blockchain’ to their identify to “capitalize at the perceived promise” of doing so.