Question 1

What is a Reverse Takeover (RTO)?

Accepted Answer

A Reverse Takeover (also called a reverse merger) is a transaction in which a private company acquires a controlling interest in a publicly listed shell company, effectively inheriting the public listing. This allows the private company to become publicly traded without conducting a traditional IPO. The result is that the formerly private business becomes the operating entity of the public company.

Question 2

What are the advantages of an RTO over a traditional IPO?

Accepted Answer

RTOs offer several key advantages over traditional IPOs: significantly faster execution (often 3–6 months versus 12–24 months for an IPO), lower cost (no large underwriting fees), less regulatory burden during the process, and an existing shareholder base. RTOs are particularly suitable for companies that want to access public markets efficiently and begin trading without the full complexity of a traditional underwritten offering.

Question 3

What is a public shell company?

Accepted Answer

A public shell company is a publicly listed entity with no significant assets or active business operations. It retains its exchange listing and regulatory standing, making it a vehicle through which a private company can achieve a public listing via reverse takeover. Sun Point Capital maintains a vetted pool of clean, compliant shell companies across North American and international exchanges ready for reverse merger transactions.

Question 4

How long does an RTO take?

Accepted Answer

A well-structured RTO typically takes between 3 and 9 months from initial agreement to completion, depending on the complexity of the transaction, exchange requirements, and regulatory review timelines. This is substantially faster than a traditional IPO. Sun Point Capital works to identify the right shell company match early and coordinates legal, financial, and regulatory workstreams to keep the process efficient.

Question 5

How does Sun Point Capital support the RTO process?

Accepted Answer

Sun Point Capital provides end-to-end RTO advisory. We begin by assessing whether an RTO is the right strategy for your business, then identify and source suitable public shell companies from our network. We facilitate negotiations between the parties, coordinate due diligence and compliance processes, and work alongside your legal, accounting, and regulatory advisors through to transaction close and post-merger integration guidance.

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