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Replies to #5174 on EBET Inc (EBET)

OzzyS85

06/21/24 1:31 AM

#5175 RE: Vitamin310 #5174

Wonder how this is gonna pan out?

infamous

06/21/24 2:20 AM

#5176 RE: Vitamin310 #5174

yes its pretty clear they lose money and therefore have no money to pay them.
If the company has just filed an 8-K stating that they will cease operations due to foreclosure, the impact on the stock's trading status will depend on several factors, including regulatory actions and market conditions.

1. **Trading Suspension:** The stock might face a trading suspension by regulatory authorities like the SEC if they believe the cessation of operations materially affects the company's ability to meet its obligations as a publicly traded company.

2. **Market Reaction:** Even if the stock is not suspended, the market reaction to such news is likely to be extremely negative. The stock price could plummet as investors react to the news of the foreclosure and cessation of operations.

3. **Broker Actions:** Some brokers might also restrict trading of the stock due to the increased risk and volatility associated with such announcements.

4. **OTC Markets Rules:** The OTC Markets may have specific rules regarding the trading of distressed securities. If the company remains compliant with these rules, the stock might still trade, but with significant volatility and potentially at much lower prices.

In summary, while the stock may still trade the next day, it will likely do so under very adverse conditions, and there is a possibility of a trading suspension or severe restrictions being imposed.