How will the management cease trade order (MCTO) impact the ability to buy or sell ERA shares during the cease period?

The MCTO functions as a temporary trading blackout on ERA (Elcora Advanced Materials) securities. From the moment the Nova Scotia Securities Commission issued the order (July 30 2025) until the cease is lifted, most market participants are prohibited from placing new buy or sell orders on the TSX, Frankfurt and OTC‑QB listings. Only a limited set of “authorized” participants—typically the exchange’s designated market makers or the company’s own broker‑dealer acting under a “restricted‑trade” exemption—may transact to maintain a minimal level of market‑making. For ordinary investors and most institutional desks, the effect is a complete inability to open, increase, or close positions in ERA shares during the cease period.

Because trading is effectively frozen, liquidity evaporates and price discovery stalls. Existing positions will be stuck at the last quoted price before the cease, and any bid‑ask spreads that do exist will likely widen as market makers bear the risk of holding an illiquid inventory. This creates two immediate trading implications:

1. Avoid initiating new exposure – entering a position now would be impossible and could expose you to “restricted‑trade” violations if you attempt to trade through a non‑authorized channel.
   
2. Plan for the post‑cease rebound – once the order is lifted (usually coinciding with the filing of the delayed financials), pent‑up demand or supply can generate a sharp move. Positioning a modest, risk‑controlled exposure after* the lift—either via a limit order at the expected re‑opening price or by using options to hedge the anticipated volatility—may capture the rebound while limiting exposure to the blackout‑‑induced illiquidity.

In short, during the MCTO you cannot buy or sell ERA shares in the open market; the period creates a liquidity freeze and a pause in price formation. Traders should stay on the sidelines, monitor the anticipated lift date, and be ready to act quickly once the cease is lifted, ideally with a pre‑defined entry plan that accounts for the likely volatility spike.