One of the most frequently used methods of going public is by means of a reverse take-over of an existing reporting issuer (public company) in Canada.
In Canada, unlike the US, there are no Over-the Counter (“OTC”) Markets, therefore all RTO’s are reviewed by the regulation department of a stock exchange, which provides a level of comfort for the company going public as well as for the shareholders of the “shell” company.
Great care must be taken in sourcing out shell companies for this purpose. They must be legally in good standing, with no overhanging lawsuits pending, and must be up to date with their required filings to the regulatory authorities.
ITB Solutions can help you with the RTO process.
- Sourcing clean shells according to the client’s requirements.
- Establishing a short list of ideal shells to approach.
- Calling the short list of shells on a no-name basis and discussing the opportunity to them.
- Arranging meetings and assisting with negotiations.
- Working with management to develop an appropriate and fair valuation of the company.
- Procuring a Letter of Intent.
- Coordinating filings and documents with the Exchange as well as with the legal and audit professionals.
- Preparation and completion of Exchange listing documents.
- Development of relationships with market makers.
- Creation of Investor Relations programs including sourcing the appropriate professionals.
- Sourcing of appropriate directors with public company experience for board appointment.