Guess what today is .... June 25 in the USA and the markets are now closed for the day .... and today was D-Day for SNDE to file its 10Q for Q1 with the SEC .... they had gotten the extension of 45 days to file.
Now they are certain in default (as if there was a question beforehand)
Total disregard for the rules and governance as a public company. Now the SEC could do any number of things.
Companies are required to file no later than one day after the due date (which is way back to I think May 10 ish). There are automatic grace periods and then extensions given for special circumstances (e.g. COVID-19). NT (Non Timely) Companies that subsequently file within the allowed grace period are considered by the SEC to have complied with rules and avoid SEC-imposed penalties. Those failing to file within the allowed grace period are subject to penalties, up to and including: * deregistration by the SEC - but that is for excessively late. HOWEVER, since they have technically missed filing within the grace period I think they are not permitted to issue any "shelf registration" (which I remember they filed for recently) until they have filed in a timely manner for at least 12 months. * delisting by stock exchanges - but typically until least six months late in its filing, and * probable debt covenant violations.
In general NT stocks are negatively perceived by market participants (i.e. they get sold) simply because it is inferred that the news is likely to be negative AND because the 10Q is less time consuming than a 10K, the reaction to NT 10Q is more negative (so the studies say).
No way around it ... a really bad look now ... didn't think they would miss that grace period. .... Maybe the time zone difference between MT and ET will save them .... would have thought marke close would be the time though.
SEA Price at posting:
16.5¢ Sentiment: None Disclosure: Not Held
