GREY:NTTCF - Post by User
Post by
Arbutus22on Mar 30, 2021 4:37pm
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Post# 32908067
Meaning of MCTO
Meaning of MCTOWhile a Cease Trade Order (CTO) is issued in response to a specific default unlikely to be quickly remedied, a MCTO is issued when "the outstanding filing is expected to be filed relatively quickly, and the default is not expected to be recurring."
https://www.bcsc.bc.ca/-/media/PWS/Resources/Securities_Law/HistPolicies/HistPolicy1/NP12203.pdf
One way to consider the MCTO is that management knows that a late filing is coming, and as a result, sp may be negatively affected, thus the MCTO prevents management from buying shares on the cheap until filing is made. Argument to be made that management would buy shares if they could, knowing that sp drop isn't warranted, and bounceback will happen upon filing. This, of course, is my positive take on the issue.