Share price: $7.01
Outstanding shares: 6,180,000
Market Cap: 43,321,800
Like all other tickers we discuss, RIVX has recently displayed highly dubious behaviour with its share price increasing from $2.80 to more than $6.00 and its volume reaching tens of thousands over the last few days despite it being virtually non-existent during the previous month. RIVX claims to be in the “business of development and sale of mobile games for Apple and Android platform”. We say claim because a quick look at their latest 10Q will quickly reveal that they are the textbook definition of a shell as no revenues or assets can be seen while an accumulated deficit of $124,807 can be clearly appreciated.
This is something that the people at the helm of RIVX are well aware of as they acknowledge that there is “substantial doubt about the Company’s ability to continue as a going concern” and anticipate that “the Company will be dependent, for the near future, on additional investment capital to fund operating expenses”. They also intend to “position (the company) so that it will be able to raise additional funds through the capital markets” (1). What position strategy they are planning is not quite clear but this has coincided with RIVX being promoted according to otcmarkets. com (2). We have been unable to find first hand evidence of RIVX’s promotional activities but according to Michael Goode’s blog, RIVX was featured on the websites BlueChipPennyStockAlerts.com and PennyStockMarketNews.com, with BlueChipPennyStockAlerts.com stating in its disclaimer that they were “compensated $8,000 in cash via bank wire by Upforce Digital Advertising LLC for advertising Rivex Technology Corp. (RIVX)” and PennyStockMarketNews.com stating in its disclaimer that they were “compensated $4,000 in cash via bank wire by Upforce Digital Advertising LLC for advertising Rivex Technology Corp. (RIVX)” (3). Neither of these websites’ entities appear to be completely legitimate as the addresses at which they claim to be at don’t exist and the same could be said of Upforce Digital Advertising LLC as it has no web presence nor is it registered as a business entity in the USA.
RIVX also raises other red flags. Their transfer agent, VStock transfer, sold 9.5 million restricted shares despite not having received all the documentation needed to complete the transaction (4). The case was ultimately dismissed by the Massachusetts District Court but it does raise serious questions about the transparency of professionalism of VStock transfer’s dealings. In addition, RIVX accountants, Michael Gillespie & Associates, don’t appear to be the most trustworthy either as they received a pretty damming report by the Public Company Accounting Oversight Board (PCAOB) in 2017 which stated that “the auditor issued an opinion without satisfying its fundamental obligation to obtain reasonable assurance about whether the financial statements were free of material misstatement”. The report goes as far as stating that Michael Gillespie & Associates should perform “substantive procedures” in order to identify significant risks such as fraud risks (5).
We thus advise investors to stay away from RIVX.