Rivulet Entertainment revises asset purchase deal terms

Published 20/05/2025, 19:34
Rivulet Entertainment revises asset purchase deal terms

Rivulet Entertainment, Inc. (RIVF), previously known as Advanced Voice Recognition Systems, Inc., has amended an existing asset purchase agreement with Rivulet Media, Inc., as disclosed in a recent 8-K filing with the Securities and Exchange Commission. The company, currently valued at $6.35 million in market capitalization, trades at $0.06 per share. On Monday, the companies agreed to a reduction in the cash portion of the purchase price from $10 million to $6.45 million. Additionally, certain conditions and default provisions that were previously required for closing have been removed. Other terms of the original agreement, dated March 1, 2024, remain unchanged.

This modification in the purchase agreement terms reflects a significant change in the financial aspect of the deal between Rivulet Entertainment, a Nevada corporation, and Rivulet Media, a Delaware corporation. The original agreement involved a higher cash consideration, which has now been decreased, potentially altering the financial dynamics of the transaction. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 155.37, though it faces profitability challenges with negative EBITDA of $0.35 million in the last twelve months.

The 8-K filing also included details about Rivulet Entertainment’s business address, the state of incorporation, and identification numbers, providing transparency regarding the company’s registration and operational details.

Investors and stakeholders of Rivulet Entertainment may find this amendment noteworthy as it affects the company’s financial commitments in the near term. The filing did not specify the reasons for the changes in the purchase agreement, nor did it detail the implications for the company’s strategy or operations.

The 8-K filing, a regulatory requirement for publicly traded companies to announce significant events, serves as the primary source for this information. The filing ensures that investors have access to material corporate changes in a timely and official manner. The full addendum to the asset purchase agreement, referenced as Exhibit 10.9, is included in the filing for further review.

Rivulet Entertainment trades under the ticker symbol RIVF on the OTC Pink marketplace, a trading platform for over-the-counter securities. The company’s decision to amend the purchase agreement could be of interest to current and potential shareholders, as it may influence the company’s financial health and future direction. InvestingPro analysis reveals the stock has experienced significant pressure, declining 92.46% year-to-date and 87.42% over the past six months. Subscribers to InvestingPro can access additional insights, including 5 more ProTips and comprehensive financial metrics to better evaluate the company’s prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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