RE:RE:RE:RE:Reverse take over??Can't help you on that. It's too deep for me. It's all confusing and fun at the same time for me. I do hold shares. I hold enough that I can watch and see this situation through without losing hair.
truecanuck wrote: Pardon me, but this is all very confusing, but intriguing:
Who is the group ("Offeror")?
Can you speculate what kind of "transaction" would have resulted in the dilution of existing shareholders?
Does this fit the usual definition of a Reverse Take Over (RTO) which is undertaken by private companies in order to become publicly traded without having to go through an IPO. This is a strategy often used to reduce the costs of migrating from a private to a public listing, Also, RTO does not generate the capital inflow characteristic of an IPO. The TSX will generally treat a transaction as an RTO if the transaction results in the existing shareholders of a company owning less than 50% of the outstanding shares or voting power of the company after completion of the transaction. An RTO will be treated by the TSX or TSXV as a new listing of the acquired business, which will require a new listing application. The company would be required to hold a shareholder meeting to approve the RTO with a Letter of Intent to be issued.
Gerald Harper and Brian Howlett have a significant number of shares in MFX, eventually making active decisions concerning its management and output. As the de facto owner of MFX, the "Offeror" may superimpose its own name on MFX while retaining its original public listing.
Another possibility exists? While any listed issuer can complete an RTO transaction, the TSX also has a special listing category for “Special Purpose Acquisition Corporations” (often referred to as “SPACs”), which allows the founders of listed shell companies to raise proceeds for the purpose of completing an acquisition of an operating business within 36 months of listing. SPACs that undertake an RTO will be subject to additional SPAC-specific requirements.
Please tell me if this makes sense.