RTO - definition30 Apr 2020 16:22
Just incase any new investors are unsure, below is a good description of what a reverse takeover is all about (We are 'A')
The terms used to discuss cash shells are often confusing.
In a reverse takeover, quoted cash shell (A) acquires private
company (B). Since (B) will nearly always be larger than (A),
it will end up with the majority of shares in, and thus control
of the merged entity (AB). In this process, (A) is said to
have conducted a reverse takeover, and (B) is said to have
reversed into (A).
The motivation for (B) is that the company gains admission to
a stock market and also access to the cash inside the cash
shell (A) to grow its business. Shareholders in (A) exchange
their shares in the dormant company for a stake in the new
company (AB) which is likely to be more valuable than (A)
and which has the prospect of capital growth when the
business (AB) is successful.
These transactions are potentially achievable for privately
owned companies looking to gain a stock market listing and
access to growth capital. There is no restriction as to the
size and business sector of either (A) or (B), however (B) will
obviously require a business case that is appealing to the
shareholders of (A) and which provides the potential of the
combined company (AB) succeeding in the future