Jan. 16, 2018, 9:04 a.m. EST

Long Blockchain enters letter of intent to merge with Stater Blockchain

Long Blockchain Corp. said Tuesday it has entered into a "letter-of-intent" to be acquired by Stater Blockchain in an all-stock deal. Under terms of the deal, Long Blockchain would form a wholly-owned subsidiary that would merge into Stater, with Long Blockchain remaining listed on the Nasdaq Capital Markets after the deal closes. If a deal between Long Blockchain, formely known as Long Island Iced Tea, and Stater is reached, Long Blockchain said it would complement its agreement to acquire cryptocurrency mining rigs. Stater focuses on developing and deploying blockchain technology solutions in the financial markets. Long Blockchain's stock was halted for news pending. At Friday's closing price of $5.02, the company had a market capitalization of about $49 million. The stock has shot up 106% over the past three months, as the company announced it was changing its name to Long Blockchain, while the S&P 500 (S&P:SPX) has gained 8.9%.

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