RTO Exchange
Easier than you Imagine • Faster than you Dream
About RTO Exchange
RTO Exchange: Engineering Seamless Reverse Takeover Solutions
At RTO Exchange, we specialize in facilitating and consulting on reverse takeover (RTO) transactions, offering bespoke services to both public shell companies and private entities. Our expertise spans across major global exchanges, including the Toronto Stock Exchange and the Johannesburg Exchange, with a unique pathway to the London Stock Exchange.
Our three core services encapsulate our commitment to smooth, strategic, and successful RTOs.
1. Bridging Public Shells and Private Ventures: We possess a profound understanding of the landscape of public shell companies – entities that have ceased operations but maintain their public status. Our role involves brokering transactions that connect these public shells with vibrant private companies seeking to enter the public domain without the complexities of an IPO. Our extensive network and market intelligence position us uniquely to create mutually beneficial partnerships.
2. Private Company Public Leap: For private companies aiming to catapult into the public sphere through an RTO, RTO Exchange offers comprehensive guidance. We leverage our deep insights and relationships within the public market to identify suitable public companies for a reverse takeover. Our strategic approach ensures a smooth transition for private companies seeking public status, aligning their business goals with the right public entity.
3. Structuring RTO Deals with Expertise: Our consultancy service extends beyond mere matchmaking. We specialize in structuring RTO deals, providing end-to-end support in navigating the complexities of the process. Our proficiency with the Toronto Stock Exchange and our unique capabilities in facilitating RTOs with companies listed on the Johannesburg Exchange set us apart. Furthermore, our exclusive relationships enable us to graduate companies from the Johannesburg Exchange to the prestigious London Stock Exchange, offering an unparalleled trajectory for growth and visibility.
At RTO Exchange, our team is composed of seasoned professionals with diverse expertise in finance, legal, and strategic consulting. We pride ourselves on our ability to tailor our services to the unique needs of each client, ensuring a seamless, efficient, and successful RTO process. We are not just facilitators; we are partners in your journey to public market success.
RTO is a Cheatcode
A Reverse Takeover (RTO) is like a cheat code. In the Capital Markets game, your goal is to transform your small, private company character into a powerful, public company character.
Normally, you'd have to play through many challenging levels (like preparing financial statements, undergoing audits, and dealing with legal stuff) to reach the "Public Company" status. This is like the standard, long path to an IPO (Initial Public Offering) in the business world.
But here comes the cheat code: the reverse takeover. Instead of playing through all those levels, you use a special combination of moves to merge your private company character with a character that's already a public company but isn't really active in the game (like an empty shell character). By doing this, you instantly transform your character into a public company, bypassing all those tough levels.
So, in video game terms, a reverse takeover is like a secret combo that lets you level up quickly and join the big leagues without playing through the long, standard process.
RTO is the cheat code to success in the Capital Markets game!
PRIVATE Company • privco • OP-CO
Imagine you're playing a video game, and you have a character called Private Company that you've built up in a private, limited world. You've got some cool powers and resources, but you're playing in a small area that only a few friends can join. This is like a private company that has grown with its own private investments and efforts but is limited in how much it can grow because it only has a few investors.
Now, suppose there's a much bigger, open world in the game that anyone can join, with more resources, more players, and more opportunities. This world is like the public stock market. In this world, characters (companies) can get resources (capital) from many more players (investors) because it's a much larger playing field.
A private company might want to get into this bigger world, but getting there usually requires completing a lot of difficult levels (like going through an IPO process, which involves a lot of regulations, financial disclosures, and can be very time-consuming and expensive).
So, in a nutshell, a private company might try to acquire a public company in an RTO because it's a quicker, often less expensive way to enter the big, open world of the public stock market, where it can gain more resources and opportunities for growth.
public company • pubco • SHELL
Think of a public company as a character in a large multiplayer online game. This character used to be active and popular, engaging with many players (investors), but over time, it's become less active. Maybe it's not participating in quests anymore or hasn't been updated with new skills or resources. This is like a public company that's not conducting much business or isn't as profitable or active as it used to be. However, this character still has a valuable spot in the game – it's still in the big, open world where lots of players can interact (the public stock market).
Now, imagine a private company character from a smaller, private game wants to join this big multiplayer world quickly and without going through the complex process of proving itself in a series of challenging levels (an IPO). This private company sees an opportunity with the inactive public company character.
By merging with or being acquired by the private company (through an RTO), the public company character gets a new lease on life. It's like the private company transfers all its energy, new quests, and resources to the public company character. This infusion of new life can make the public company character active and exciting again, now backed by the strengths and assets of the private company.
For the public company, this is a chance to be revitalized and play a significant role in the game again, powered by the private company's business. It's a mutually beneficial move: the private company gets quick access to the big multiplayer world (public stock market), and the public company gets a new purpose and direction by leveraging the strengths of a dynamic private company.
RTO Consulting Steps
At RTO Exchange, we specialize in guiding companies through the intricate process of a Reverse Takeover (RTO). Our approach is methodical, ensuring every aspect of the RTO is meticulously managed. Here’s how we break down the journey:
1. Initial Consultation and Strategy Development:
- Understand the client's business goals and objectives.
- Evaluate the suitability of an RTO for the client’s strategic vision.
- Develop a tailored RTO strategy, including target market and type of public company to merge with.
2. Identifying and Vetting Potential Targets:
- Utilize our extensive network to identify potential public shell companies.
- Conduct thorough due diligence to assess the financial health, market position, and legal status of these companies.
3. Valuation and Deal Structuring:
- Perform a comprehensive valuation of both the private and public entities.
- Structure the deal in a way that aligns with client objectives, including share distribution, management roles, and future operations.
4. Negotiation and Agreement:
- Facilitate negotiations between the private company and the public shell company.
- Draft and finalize the terms of the agreement, ensuring compliance with legal and regulatory requirements.
5. Regulatory Compliance and Documentation:
- Prepare and file necessary documents with regulatory bodies, including the Toronto Stock Exchange or Johannesburg Exchange.
- Ensure the transaction meets all legal, financial, and corporate governance standards.
6. Communication and Announcement:
- Develop a communication strategy to announce the RTO to stakeholders, investors, and the public.
- Manage public relations and investor relations to maintain positive sentiment and transparency.
7. Post-Merger Integration:
- Assist in the integration of the two companies, including corporate culture, operations, and financial systems.
- Provide ongoing support to ensure a smooth transition and operational efficiency.
8. Additional Services for International Exchanges:
- For RTOs involving the Johannesburg Exchange, guide the process to graduate the company to the London Stock Exchange.
- Manage relationships and compliance across international exchanges.
Which Stock Exchange?
Toronto Stock Exchange RTO | Johannesburg Stock Exchange RTO | |
RTO Timeframe | 3-6 months | 2-5 months |
Lawyer Hourly Rate | $400 | $70 |
Corporate Accountant Hourly Rate | $175 | $29 |
Shell Prices | $200,000 to $2 million | $7,000 to $100,000 |
Move to Bigger Exchange | None | Easy Entry to London Exchange |
Corporate Tax Rate | 25% | 28% |
CEO Salary (Avg) | $390,000 | $85,000 |
Exchange Market Cap | $2.13 trillion | $4.82 trillion (JSE&LSE) |
We Can Help You Gain Entry Into Either Exchange • It’s YOUR Choice!
RTO Funding Options
If you don’t have the funds to close your RTO Transaction - we can help you. It’s so easy!
VERY low interest loans upto
C$250,000
(r2,1 million)
investors providing upto
c$500,000
(r6.9 million)
zero fee consulting to get your rto to success
We’re Ready to Work With You!
Send us a message and let's talk about it.
CONTACT US
CONTACT & OFFICES
MONTREAL
500 Place d’Armes
Montreal, Quebec H2Y 2W2
JOHANNESBURG
222 Smit St, Braamfontein, Johannesburg, South Africa