about reverse takeover Reverse take over
Once a suitable target company is identified and goes through all of the approvals and paperwork (and audited financials), the CPC completes the qualifying transaction. In essence, the target operating company exchanges its shares for the shares of the CPC shell and takes over the CPC shell company. The management team of the target operating company generally stays as is and the board of the target operating company is re-constituted to possibly include directors of the CPC. The benefit to the target operating company in this approach is that it saves the company the time and expense for it to go through the regulatory process of becoming publically listed. Since the CPC has already gone through this process, the transaction to take the target company can be done in weeks vs. months.