Reverse Take-Over

A reverse take-over is also known as a "back door listing" or "reverse merger" of a company already listed on TSX or TSXV. This listing can be done in a number of ways, including an amalgamation or issuance of shares in exchange for other shares or assets of the issuer.

You will need the help of your company's sponsor, lawyer and auditor to find a suitable candidate for a reverse takeover.

The company resulting from the RTO must meet the original listing requirements of the Exchange and must submit to an approval procedure similar to that of an original listing application.

The NEX board, managed by TSXV, provides the potential for an additional source of listed shell companies. This allows shareholders of a private company to merge with an issuer that has no substantial business activity.