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Reverse Takeover (RTO)

A reverse takeover (RTO), sometimes known as a reverse IPO, is the process by which a small private business acquires a bigger, existing publicly listed firm in order to go public. Because the smaller firm is taking over the larger company, the merger is going place in "reverse" order, which is unusual. Benefits of a Reverse Takeover 1. No need for registration Because the private business will acquire the publicly traded firm through the mass purchase of shares in shell companies, unlike an IPO, the company will not require registration. 2. Less expensive A tiny private company's decision to go public through an Initial Public Offering (IPO) is not simple. It has the potential to be extremely costly. The cost of a reverse takeover is often a fraction of the cost of an IPO. 3. RTO saves time The registration and listing procedure for an initial public offering (IPO) can take months or even years. A reverse takeover shortens the time it takes to go public from many months ...

Advantages of RTO (Canada)

There are several potential advantages of going public through reverse takeover transaction. One of the biggest is better access to financing options. Usually private placement is conducted simultaneously with reverse takeover.  It will provide capital for company's future plan and projects and also fund the expenses of RTO. Public company that is reporting issuer has the opportunity to raise additional capital. Secondary offering require prospectus forms that are significantly shorter and are subjected to shorter review period by the Securities Commission in comparison to RTO transaction. Also, public companies are in more favorable position to obtain debt financing. If company complies with periodic reporting requirements it makes it more attractive to lenders and debt investors. Small and growing companies  in Canada also have lower listing requirements and less continuous disclosure obligations (TSXV and CSE). Being public company provides greater liquidity f...

Going public in Canada

Are you thinking of Going Public in Canada? Are you Seeking Investment for your Products, Services, or a Business Plan? Considering Venture Capital? Or just, a source of ongoing capital to properly grow your business? Canada has a robust capital market, as well as strength in funding growth ventures. Getting access to funding opportunities can be facilitated by becoming a public company on the CSE stock market. Being a Publicly Traded Company provides access to the Canadian Capital Markets and the many pools of Public Venture Capital that are available to emerging companies. It raises your corporate profile and puts you "on the radar" as a suitable investment opportunity for investors.  In Canada, the main choices of going public are the Toronto Stock Exchange (TSX), the TSX Venture Exchange (TSX-V), and the CSE - Canadian Securities Exchange.  We invite you to consider the advantages of NEO or CSE as a destination to take your company public. Companies that go p...

Successful Reverse Merger with Mina Mar Group

Even though reverse merger has many benefits, especially compared to traditional IPO process and  many advantages come with being a public company there are also some disadvantages. This doesn't mean that you can't avoid potential problems. We at Mina Mar Group are offering you our expertise in reverse mergers so you can concentrate on you business and will will take care of every stage of the process and ensure successful closure. Because you are reverse merging into a public shell it can sometimes come with some history and shareholders. Often that means there may be some pending lawsuits, messy records or some liabilities that were not expected. This is exactly the point when we get involved and make sure that reverse merger proceeds with no problems. Mina Mar Group has invested significant resources and capital to develop and maintain an inventory of clean public shells for a variety of stock markets and company sizes. We have done the extensive work of "cle...

Advantages of reverse merging into public shell

It's no secret that many businesses   use reverse merger as a tactic to avoid traditional IPO process. Merging into a public shell brings several advantages. During a process of reverse merger the control of public shell company is bought by the shareholders of private company, merging with it and becoming public in that way. Because public shell is already registered with Security and Exchange Commission there is no need to do it again.  Reverse merger is considered alternative to lengthy and costly process of traditional IPO. Typically it takes 6-12 months to go public by means of initial public offering, sometimes even more than a year. Also be prepared that it is a time consuming task for your top management and they will be using less time on operating the business. With reverse merger the whole process is much quicker ranging between couple of weeks and four months while also lowering the cost of going public and diluting fewer of company's stocks...

What is the purpose of a shell company?

A shell company or shell corporation is a company that doesn't have active business operations in other words it is a company that doesn't make money and doesn't provide clients and customers with services or products. The name itself doesn't describe the purpose of business entity but it classify it according to its role in a particular corporate structure. Shell companies can be formed in more than one way and not all shell companies have the same purpose. To become a shell company interested party must file with the SEC while some other shell companies have previously had operations that shrunk that shrunk due to unfavorable market conditions or other reasons. Also any start-up company that register with SEC is technically a shell company. This type of corporation is legal but it can sometimes be used in illegitimate way. Legal use of shell company has many benefits: Shell companies can be used to hold stock or intangible assets of another business. New ...

Going public - Reverse Takeover

Since 2006 we have been assisting publicly traded companies create a win win relationship with their shareholders and followers. We specialize or focus on small cap both reporting and non-reporting companies.  For private companies we work with equity lenders, who finance your business  via  “traditional”  methods. The financiers security is the equity in your company and your undertaking that you will go public within the next 12-24 months. Your cost is zero if you qualify. This is done via reverse take over (RTO) . The beauty of the RTO deal is in a RTO you are in control of both companies as existing management resigns.  In addition to RTO we do corporate turnarounds and offer full range of boutique private placement financing. Process In a reverse takeover, shareholders of the private company purchase control of the public shell company and then merge it with the private company. The publicly traded corporation is called a "shell" since al...