Sunrise Telecom jumps after name change to SRTI Blockchain Generation
Penny stock Sunrise Telecom (SRTI) has jumped over 68% in afternoon trading after announcing it has changed its name to SRTI Blockchain Generation, reflecting the company's new strategy, which is to commit to becoming a meaningful player in the evolution of blockchain technology. The stock is now trading at 3.7c per share, up from 2c per share. NOT FIRST TO REBRAND: In December 2017, Long Island Iced Tea Corp. announced it was shifting its primary corporate focus towards the exploration of and investment in opportunities that leverage the benefits of blockchain technology, and was changing its name from Long Island Iced Tea Corp. to Long Blockchain Corp (LBCC). Shares of LTEA, which now trade as LBCC, surged over 183% on the day of that announcement. SEC SCRUTINY: In January, SEC chairman Jay Clayton criticized public companies changing their names and/or business models in an attempt to capitalize on the hype surrounding blockchain technology. Clayton said, ""The SEC is looking closely at the disclosures of public companies that shift their business models to capitalize on the perceived promise of distributed ledger technology and whether the disclosures comply with the securities laws, particularly in the case of an offering... I have instructed the SEC staff to be on high alert for approaches to (blockchain) that may be contrary to the spirit of our securities laws and the professional obligations of the U.S. securities bar."