Groupe Stingray Inc. Updates Management Cease Trade Order Ahead of August 29 Audited Financials Deadline

Overview of the Management Cease Trade Order

The temporary management cease trade order was imposed by the Autorité des marchés financiers under National Instrument 12-203 (IG 12-203 in French), initially announced in a company release dated June 22, 2026. This order restricts the CEO, CFO, and board members from trading Stingray securities until the required financial documents are filed.

The cease trade order does not restrict other shareholders or market participants from trading Stingray securities during this period. Furthermore, Stingray has committed to not issuing or acquiring securities from insiders or employees except as required by legally binding obligations existing as of June 30, 2026.

Filing Schedule and Auditor Collaboration

Stingray and its auditor continue to work diligently to finalize the audited consolidated financial statements and related filings. The company aims to file these documents by August 29, 2026, at the latest. The cease trade order will remain in place until the filings are completed on SEDAR+, Canada’s electronic document filing system.

The filings include the audited consolidated financial statements for the fiscal year ended March 31, 2026, management discussion and analysis, CEO and CFO certifications, and the annual notice for the same fiscal year.

Adherence to Alternative Disclosure Requirements

In line with NI 12-203, Stingray has committed to providing biweekly updates until the financial statements are filed. The company will continue these updates as long as the filing remains outstanding.

Stingray confirmed it has met its obligations under the alternative disclosure guidelines and has not breached any commitments as of the announcement date, ensuring transparency with investors during this interim reporting period.

Status of Material Information and Defaults

The company affirmed there are no material changes to previously disclosed information from the June 22, 2026 announcement or subsequent cease trade order updates on June 30 and July 14, 2026, that have not been publicly communicated.

Stingray is not aware of any additional specified defaults beyond the initially reported default and does not anticipate any new defaults. No other undisclosed material information about the company’s business exists as of the announcement date.

Impact on Insider Trading and Corporate Transactions

The cease trade order restricts senior management and directors from trading Stingray securities until the required filings are complete, preventing trading on undisclosed material information.

The company also limits issuance and acquisition of securities involving insiders or employees, except for transactions mandated by legally binding agreements existing before June 30, 2026. These measures aim to avoid perceptions of favoritism or non-arm’s-length dealings during incomplete financial reporting.

Company Profile and Digital Media Services

Groupe Stingray Inc. is among the world’s largest digital broadcasting companies, delivering audio and video content globally across connected platforms. Its offerings include thousands of live radio stations, music television channels, concerts, documentaries, karaoke products, and wellness channels accessible via connected TVs, smart speakers, mobile devices, connected cars, and retail locations.

Stingray owns prominent brands such as TuneIn, Singing Machine, Stingray Karaoke, and Qello Concerts, reaching hundreds of millions of consumers monthly with a workforce exceeding 1,000 employees worldwide. The company’s business model connects brands with engaged audiences across multiple platforms and geographies to generate advertising reach.

Forward-Looking Statements and Risk Factors

The announcement includes forward-looking information regarding the expected filing date and lifting of the cease trade order. While Stingray believes these expectations are reasonable, they involve risks and uncertainties based on current information.

Various factors beyond the company’s control could cause actual outcomes to differ materially from these expectations. Additional risk details are available in the risk factors section of the company’s annual information form for the fiscal year ended March 31, 2025, accessible on SEDAR+.

Reporting Duties and Market Transparency

The biweekly update requirement under NI 12-203 ensures investors and market participants receive consistent information on the company’s financial reporting status while the cease trade order is active. These updates promote transparency and reduce information asymmetry.

Stingray’s commitment to regular communication during this interim period demonstrates cooperation with regulatory requirements amid reporting non-compliance.

Investor Considerations

Investors should monitor Stingray’s progress toward the August 29, 2026 filing deadline and follow biweekly updates. Filing the audited financial statements and related documents will be pivotal, as it will lead to lifting the cease trade order and allow senior management and directors to resume normal trading.

The immediate impact on share price remains unclear. However, the company’s confirmation of no material changes or new defaults and adherence to regulatory reporting may provide reassurance regarding disclosure practices during this period.