Shares in iced-tea company “Long Island Iced Tea Corp” have rocked by 600% after the company announced it was changing its name to “Long Blockchain Corp.”
The company, which has no track record in blockchain technology, said it was pivoting from delicious cold drinks to exploring investment opportunities in the blockchain space. Tea fans need not worry – the company will still make tea through a subsidiary.
In a statement the company said it was “already in the preliminary stages of evaluating specific opportunities involving blockchain technology.”
“Enhancing Shareholder Value”
The Long Blockchain Corp. have started to consider options for their new direction. On the table include partnerships with a London FX services company, a smart contract platform or a blockchain software developer. However, they stressed that these plans were at an early stage and nothing had been finalised.
According to the company’s CEO Philip Thomas, blockchain technology was a “once-in-a-generation opportunity” and they believe that the change in focus is the best way to fulfil their commitment to “enhancing shareholder value.”
As part of the change the company will request that Nasdaq change its trading symbol to reflect the new direction. The tea company’s stock had been down 41% on its pervious year before the name change.
The Long Island Iced Tea Corp are not the only ones who have found that mentioning blockchain improves share performance. In fact, it’s not even the first drinks company to see the blockchain effect. Chinese company SkyPeople Fruit Juice was up over 200% this week after announcing its own pivot and name change to Future Fintech Group.