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Farmingdale, NY, 7 December 2018 (GLOBE NEWSWIRE) – Long Blockchain Corp. (OTCPink: LBCC) ("Long Blockchain" or "Company") announced today that it has entered into an agreement for a joint venture (the "Joint Venture") with EHCo LLC, a holding company and the parent company of Entrex Capital Market ("Entrex"), to scale the alternative trading market of Entrex, leader in the blockchain sector.
The Joint Venture will provide a blockchain-enabled alternative trading platform for international and domestic investors to find, research, track, manage, negotiate, regulate and serve various asset classes. The Joint Venture will be led by Stephen H. Watkins, who has founded more companies that use technology to consolidate decentralized business sectors. To further develop the relationship between Entrex and the Company, Mr. Watkins also agreed to be appointed to the Long Blockchain Board of Directors. Andy Shape, Chief Executive Officer and Director of Long Blockchain, will act as the Joint Venture manager, along with Mr. Watkins and a third independent manager who will be mutually appointed by Entrex and Long Blockchain.
In connection with its constitution, Entrex has contributed to the Joint Venture all the intellectual property necessary to operate the alternative trading platform. Long Blockchain received a 10% stake and Entrex received a 90% stake in the joint venture. In addition, as consideration for the contribution of the activities, Entrex will receive 20% of the money received from the Joint Venture as revenues every month, up to a maximum of $ 57,000,000. If the Joint Venture fails to make a required payment of money received as revenues, under certain conditions Entrex will have the right to repurchase the assets previously transferred for a nominal fee. If the Joint Venture reaches $ 50,000,000 in revenues and $ 15,000,000 in EBITDA for any 12-month final period, Long Blockchain will be entitled to acquire Entrex's participation in the Joint Venture.
"Entrex's mission is to provide exposure, credibility and liquidity for business companies and their investors," said Mr. Watkins. "We were honored in 2015 to have our broker brokers handle the first security to trade in a blockchain, TIGRcub Bond of Overstock.com, and since then we have managed hundreds of trading stocks on the Entrex IBM Hyperledger, which we believe it will become one of the main immutable registers. "
"We believe our partnership with Entrex will facilitate the transition of Long Blockchain into the blockchain business by leveraging Entrex's proven blockchain-enabled technology platform.Together, we will try to scale the platform across a wide range of industries and types of resources, including interests in Opportunity Zone, cannabis and entertainment properties, as well as corporate bonds, "said Mr. Shape.
About Long Blockchain Corp.: Long Blockchain Corp. is focused on developing and investing in globally scalable blockchain technology solutions. It is dedicated to becoming a significant participant in the evolution of blockchain technology that creates long-term value for its shareholders and the global community by investing and developing "on-chain" businesses. Blockchain technology is radically changing the way people and companies make transactions and the Company will strive to be at the forefront of this dynamic industry, actively pursuing opportunities. Its wholly owned subsidiary Long Island Brand Beverages, LLC operates in the alcohol-free beverage sector with its flagship brand "The Original Long Island Brand Iced Tea®". For more information about the Company, visit www.longblockchain.com.
About Entrex: Entrex was founded in 2001 as a "capital market system for entrepreneurial enterprises". The new joint venture will use Entrex's intellectual properties and blockchain technologies; built and tested in 17 years using IBM's Domino and Hyperledger technology platforms. The Entrex platform has the origin, facilities, offers, positions, trades, assumptions and services of debt and equity securities of companies through regulated entities that serve investors and issuers. Collaboration with industry leaders and the constituents of the regulated market allows investors to find, research, track, manage and negotiate business titles while providing entrepreneurial enterprises with access to capital.
Forward-looking statements: This press release contains statements about the Company's expectations, intentions, plans and beliefs that constitute "forward-looking statements" pursuant to Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to safe harbor protection provided by these sections. These statements, which involve risks and uncertainties, concern the discussion of the Company's business strategies and its expectations regarding future transactions, margins, sales, new products and brands, potential joint ventures, potential acquisitions, expenses, profitability, liquidity and capital and analysis and other information based on forecasts of future results and estimates of amounts not yet determinable. They also include statements regarding the anticipated benefits of the transaction announced between the Company and Entrex. These statements include any statement that does not directly refer to a historical or current fact. You can also identify these and other forward-looking statements with the use of words such as "could", "will", "should", "expect", "intend", "design", "anticipate", "believe", "Think", "estimate", "search", "predicts", "could", "projects", "potential" and other similar terms and phrases, including references to hypotheses. These forward-looking statements are based on expectations and beliefs regarding future events affecting the Company and are subject to uncertainties, risks and factors relating to its operations and business environments, all of which are difficult to predict and many of which are beyond its control, this could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These risks include the ability of the Joint Venture to successfully pursue its business plan, the possibility that the Company's participation in the Joint Venture may be diluted as a result of capital increases by the Joint Venture, the possibility that Entrex may have the right to repurchase the previously contributed with nominal resources, the ability of the company to develop and commercialize new technologies, the history of the Company's losses and expectations of further losses, its ability to expand its operations in blockchain technologies, its ability to develop or acquire new brands, the success of its marketing activities, the effect of competition in its sector and the economic and political conditions in general, including the current economic environment and markets. Further information on these and other factors is described in the reports that the Company files with the Securities and Exchange Commission, including but not limited to the discussions contained in the caption "Risk Factors." When considering such forward-looking statements, it is necessary to bear in mind the precautionary statements contained in this press release and the reports that the Company filed with the Securities and Exchange Commission. New risks and uncertainties arise from time to time and the Company can not predict those events or the way they can influence them. The Company undertakes no obligation to update forward-looking statements after the date of this press release following new information, future events or developments, except as required by federal securities laws.
For more information: Andy ShapeLong Blockchain Corp.1-855-452-LBCC [email protected]
