Long Blockchain Corp. Enters into Definitive Agreement for Sale of Its Beverage Subsidiary Long Island Brand Beverages
Long Blockchain Corp. announced that it has entered into a definitive agreement for the sale of its wholly-owned beverage subsidiary, Long Island Brand Beverages LLC (“LIBB”), to ECC Ventures 2 Corp. (“ECC2”) (TSXV: ETWO.P). LIBB operates in the non-alcohol ready-to-drink segment of the beverage industry under its flagship brand ‘The Original Long Island Brand Iced Tea®’. ECC2 is a capital pool company listed on the TSX Venture Exchange.
“This transaction is a significant milestone for the Company, and following its close later this year, it will allow us to concentrate our efforts on our underlying loyalty operating business,” stated Andy Shape, CEO of Long Blockchain. “Our loyalty platform has experienced strong growth over the past year with new and existing customers, and we look forward to building on that progress through our partnership with Stran Promotional Solutions.”
Under the terms of the agreement, ECC2 will acquire 100% of LIBB. The transaction consideration payable to LBCC will consist of CAD$500,000 in cash and 3,666,667 newly-issued shares of ECC2, with the share consideration subject to a working capital adjustment.
ECC2 has engaged Canaccord Genuity Corp. to complete a brokered private placement of subscription receipts for minimum gross proceeds of CAD$2,000,000 through the issuance of subscription receipts at a price no less than CAD$0.50 per subscription receipt. The proceeds of the private placement will be held in escrow, pending the receipt of all applicable regulatory approvals and completing all matters and conditions relating to the LIBB sale transaction. Closing of the LIBB sale transaction is subject to a number of conditions, including completion of the private placement or another brokered financing with gross proceeds of $2,000,000, consent by the TSX Venture Exchange to the transaction and delivery of audited financials for LIBB. The Company presently anticipates that the closing of the transaction will occur at the beginning of the fourth quarter of 2019.