Understanding Rivalry's Cease Trade Order Application and Its Impact
Understanding Rivalry's Management Cease Trade Order Application
Recently, Rivalry Corp. (TSXV: RVLY) (OTCQB: RVLCF), known for being a frontrunner in the digital sportsbook and iGaming market, made headlines due to an announcement regarding a management cease trade order. This situation arises from their delay in filing essential annual financial documents for the year ended December 31, 2024.
Details of the Management Cease Trade Order
The management cease trade order (MCTO) is a regulatory measure applied for with the Ontario Securities Commission. Its purpose is to prevent the company’s management from trading any of its securities until the overdue annual filings are completed. Such filings include the audited financial statements and management's discussion and analysis. This delay requires the company to follow particular guidelines set out in National Policy 12-203 (NP 12-203).
What's Next for Rivalry?
As the company faces this situation, a decision from the Ontario Securities Commission is still pending. The commission can either grant the MCTO or impose an issuer cease trade order. Until a resolution is reached, Rivalry has committed to adhering to the provisions of NP 12-203, including regular updates via news releases about the status of their filings.
The Impact of This Delay
The need for a management cease trade order stems from Rivalry’s dedication to maximizing long-term stakeholder value through an ongoing strategic review. This review is crucial and has necessitated the current management resources' focus, unfortunately resulting in missed deadlines for the Annual Filings.
Expected Timeline for Filings
Looking ahead, Rivalry anticipates completing both the strategic review and the annual filings by mid-year, specifically by June 30, 2025. This strategic review aims to improve the company’s positioning and ensure better outcomes for shareholders and other stakeholders.
Current Status of the Company
Importantly, Rivalry has confirmed that it is not involved in any insolvency proceedings presently. Moreover, the company maintains that all material information regarding its operations and performance is being disclosed, ensuring transparency for investors and other parties involved.
Communications and Contact Information
For further inquiries, Steven Salz, Co-founder & CEO, remains accessible at ss@rivalry.com. Additionally, investor-related questions can be directed to investors@rivalry.com, ensuring a line of communication is available for stakeholders.
Frequently Asked Questions
What is a management cease trade order?
A management cease trade order restricts the company's management from trading its securities pending the filing of required documents.
Why did Rivalry Corp. apply for an MCTO?
Rivalry applied for the MCTO due to a delay in filing its audited financial statements and management’s analysis for the fiscal year ending December 31, 2024.
What are the implications of the delay in filings?
The delay may affect investor confidence and stock performance until the required documents are submitted and reviewed.
When does Rivalry expect to finalize the annual filings?
The company expects to complete its annual filings and strategic review by June 30, 2025.
Who can I contact for more information about Rivalry?
For inquiries, you can reach out to Steven Salz at ss@rivalry.com or the investor contact at investors@rivalry.com.
About The Author
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