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Benefits of Going Public Through the RTO (Reverse Take Over)

• Initial costs are much lower and excessive investment banking fees are avoided.
• The time frame for becoming public is considerably shorter.
• There is no significant regulatory review or regulatory approval for the transaction.
• The company can now use its stock as currency to finance acquisitions and attract quality management.
• Capital is easier to raise as investors now have a clearly defined exit strategy through the public markets.

Some High Profile and Successful RTO

• Armand Hammer, world renown oil magnate and industrialist, is generally credited with having invented the RTO. In the mid 1950s, Hammer invested in a shell company into which he merged multi decade winner Occidental Petroleum.
• In 1970 Ted Turner completed a reverse merger with failing Rice Broadcasting, which went on to become Turner Broadcasting.
• In 1996, Muriel Siebert, renown as the first woman member of the New York Stock Exchange, took her brokerage firm public by reverse merging with J. Michaels, a defunct Brooklyn Furniture company.
• One of the Dot Com fallen Angels, Rare Medium (NASDAQ: RRRR), merged with a marginal refrigeration company. This was a $2 stock in 1998 which found its way over $90 in 2000.
• Aklaim Entertainment (NASDAQ: AKLM) merged into non operating Tele-Communications Inc in 1994.