Diverse Capital Pte Ltd
Description: Reverse Takeovers (RTO's) - Assisting businesses to go public
A reverse take-over of an existing company (RTO), is a transaction whereby a public company which has few, if any, assets (“Public Co / Shell”) acquires all of the securities of a private company which has substantial assets and/or operations (“Private Co / Target”). The result of this transaction is Private Co indirectly “going public”. Public Co acquires the securities of Private Co by issuing to Private Co’s shareholders a significant number of shares in Public Co (equivalent in value to the assets or o
RTO's suitable for early stage and growth stage companies whereas IPO's are generally suited for more mature companies. An Initial Public Offering ("IPO) can be riskier for Private Co's if the market conditions were to change adversely during listing. All costs in an IPO are borne by Private Co. RTO's potentially less expensive than an IPO depending on the cost of the Shell, as some of Target's "out of pocket expenses" can be passed on to the Shell. Shareholder Spread Benefit as the Public Co is already
Canada (TSX/TSXV, CSE or NEO) - Listing on the Toronto Stock Exchange / Toronto Stock Exchange Venture ("TSX / TSXV"), Canadian Securites Exchange ("CSE") or NEO Exchange ("NEO") - (4-6 months to list). Listing in Canada then gives instant dual listing ability into the US (6 weeks) and Frankfurt (2-4 weeks). Capital Pool Company ("CPC") or RTO by way of a listed shell is a very common route for growth companies to go public in Canada. Australia (ASX) - There has been a strong rise in overseas companies lis
Diverse Capital Pte Ltd