Long Blockchain Corp fka LBCC

[Roland Rick Perry]

Loyalty News?

Got spooked yesterday, thought news was afoot.

..on July 26, 2018, SLGI entered into a twelve-month agreement with Stran & Company, Inc. (“Stran”), pursuant to which Stran and its affiliates will provide services in connection with the Loyalty Programs business (the “Stran Agreement”). The principal owner of Stran is also a stockholder of the Company. Pursuant to the Stran Agreement, Stran has transferred to SLGI its sole Loyalty Programs customer account. Stran shall provide to SLGI management, sales, accounting, operations, administrative and other services, as well as office space, equipment, software and utilities for employees of SLGI, as necessary for the operation of the loyalty programs. The services of Stran shall be provided to SLGI at Stran’s cost. The Company believes that its relationship with Stran will help to accelerate its development of customers and solutions that will help it to grow its loyalty and blockchain business.


Upon the inception of the Stran Agreement, the Company issued to Stran 2,500,000 shares of its common stock, which vest based upon performance, as an incentive to Stran for its efforts to develop SLGI’s Loyalty Programs business (the “Stran Shares). Upon issuance, the Stran Shares have a restrictive legend, are subject to lockups and are being held in escrow until such time that the restrictions can be released upon performance, as outlined in the table below. The Stran Shares shall be earned based upon SLGI having achieved the performance levels for revenue, net of allowances (“Net Revenue”) and Adjusted Earnings before Income Taxes, Depreciation and Amortization (“Adjusted EBITDA”), divided by Net Revenue (“Adjusted EBITDA Margin”) for each of the two one year periods following the effective date of the Stran Agreement, each as further defined with the Stran Agreement. Furthermore, Stran is eligible to earn shares in addition to the Stran Shares, based upon the performance as outlined below.


https://www.otcmarkets.com/filing/html?id=13069846&guid=1UZbUFooDQQ353h