SCOTTSDALE, AZ - Rivulet Entertainment, Inc., formerly known as Advanced Voice Recognition Systems, Inc., has unveiled significant changes to its corporate structure through an 8-K filing with the SEC. The company, trading under OTC:RIVF, has implemented amendments to its Articles of Incorporation to establish a multi-tier preferred stock system.
The modifications, effective as of September 25, 2024, outline the creation of Series A, Series B, and Series C Preferred Stock. This strategic move is part of Rivulet Entertainment's broader efforts to reorganize its capital structure. The Certificate of Designations for the Series B Preferred Stock can be found in Exhibit 3(i) of the 8-K report.
Headquartered in Scottsdale, Arizona, Rivulet Entertainment operates in the crude petroleum and industry under SIC code 1311. The company, incorporated in Nevada, follows a fiscal year-end of June 30.
The SEC filing confirms that Rivulet Entertainment has not engaged in certain activities outlined in the Exchange Act and the Securities Act. Additionally, the company has identified itself as an emerging growth company as per definitions in the Securities Act of 1933 and the Securities Exchange Act of 1934.
President Walter Geldenhuys has endorsed the SEC filing, emphasizing Rivulet Entertainment's compliance with the Securities Exchange Act of 1934.
This announcement comes as Rivulet Entertainment continues to navigate the energy and transportation sector, with previous name changes reflecting its evolving business focus. The company's recent adjustments include amendments to its Asset Purchase Agreement and the inclusion of additional shareholders in the transaction.
Analysis and Breakdown
Rivulet Entertainment has made significant changes to its corporate structure by introducing a multi-tier preferred stock system. These modifications are part of the company's efforts to reorganize its capital structure and attract investments.
Despite having a market capitalization of $66.16 million, Rivulet Entertainment is currently not profitable, with a negative adjusted operating income of -$0.42 million over the last twelve months. The company's decision to revise its capital structure may be aimed at improving its financial flexibility.
Although the stock has shown volatility, with a strong return over the last month but a decline over the past six months, investors may find the high price volatility appealing in light of the recent corporate changes. It is essential for investors to conduct further research to understand Rivulet Entertainment's financial health and prospects following these amendments.
