Stocks

Reverse Takeover (RTO)/Backdoor Listing

In the world of finance, a reverse takeover or backdoor listing is a complex process involving the issuance of securities by a listed company to parties who are transferring securities or other assets into the listed company. This results in a change of control of the listed company and the new security holders owning more than 50% of the voting securities. This can be achieved through various transactions such as a business or asset acquisition, an amalgamation, or a plan of arrangement. It is important to note that the listing of securities through a reverse takeover is considered a new listing, bringing with it its own set of implications.

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