Reverse Takeover (RTO)

Reverse Takeover (RTO), also known as a reverse merger, is a type of merger used by private companies to become publicly traded without resorting to an initial public offering.

Reverse Takeover (RTO)

Reverse Takeover (RTO), also known as a reverse merger, is a type of merger used by private companies to become publicly traded without resorting to an initial public offering.

 


Explanation of Reverse Takeover

In a Reverse Takeover, the private company buys enough shares to control a publicly traded company. The private company's shareholder then uses their shares in the private company to exchange for shares in the public company. At this point, the private company has effectively become a publicly traded one.


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