TLDR
- The Ontario Securities Commission issued a failure-to-file cease trade order against NorthStar Gaming after the company missed its 2025 audited annual financial statements deadline.
- NorthStar’s auditor withdrew its report on 2023 and 2024 financials, citing an inability to verify a key technology vendor’s system controls.
- Trading of NorthStar securities is now halted across all Canadian jurisdictions, with limited exceptions for non-insiders selling through foreign markets.
- CEO Michael Moskowitz stepped down in December, and the audit committee chair also resigned, with Corey Goodman now serving as interim CEO.
- If filings are submitted within 90 days, NorthStar can apply to have the cease trade order revoked.
NorthStar Gaming Holdings has been hit with a cease trade order from the Ontario Securities Commission after the company failed to file its audited annual financial statements for 2025.
The order also covers related management discussion documents and CEO and CFO certifications that were due alongside the financials.
The company confirmed the cease trade order on Monday. It effectively halts all trading of NorthStar securities across Canadian jurisdictions until the required filings are submitted.
NorthStar’s auditor pulled its report on the company’s 2023 and 2024 financial statements. The auditor said it could not rely on its testing procedures without receiving a new System and Organization Controls report from one of NorthStar’s key technology vendors.
The SOC report is used to verify the systems that support player account management. Without it, the auditor said it could not confirm the accuracy of its earlier work.
NorthStar has pushed back on this position. The company maintains the vendor’s existing SOC report is reliable and that its financial statements fairly represent its financial position.
Auditor Dispute and Leadership Shakeup
The disagreement between NorthStar and its auditor sits at the center of the filing delay. NorthStar says it is working with the technology vendor to resolve the issue and produce the documentation the auditor requires.
Questions have also been raised about NorthStar’s cash flow and liquidity. Some observers have suggested the company may not have enough funds to cover its operating expenses.
The filing crisis comes during a period of leadership turnover at the company. CEO Michael Moskowitz stepped down in December. Barry Shafran, who chaired the audit committee, also resigned.
Corey Goodman has taken over as interim CEO. He is now responsible for guiding NorthStar through the regulatory and financial challenges.
What Happens Next for NorthStar
The cease trade order includes limited exceptions. Beneficial holders who are not insiders or control persons can still sell shares, but only through foreign regulated markets and Canadian-registered dealers.
NorthStar has not provided a clear timeline for completing the required filings. The company has said it will update the market once progress is made.
If the filings are submitted within 90 days of the order, they would serve as an application to have the cease trade order revoked. That assumes the underlying audit issues are also resolved by that point.
The company has postponed its annual general and special meeting, which was originally scheduled for May 25. NorthStar says it will announce a new meeting date after the financial statements are refiled and the OSC lifts the order.
NorthStar continues to say it is working to address the auditor’s concerns and restore investor confidence. As of now, trading remains frozen across all Canadian markets.
