Real Green Show
Real Green Show
JamRock Organics Inc.
Cannabis Stocks on the rise - 3 things to consider RGS Episode 31
15 minutes Posted Feb 19, 2021 at 2:48 am.
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Show notes
In todays show we’ll take a look back at the important news in the Cannabis industry last week.
And stick around to the end of the show for my final thought on the rise of Cannabis stocks and 3 things you should consider before investing.
RTO vs SPAC
A reverse takeover (RTO) or reverse merger takeover is the acquisition of a public company by a private company so that the private company can obtain public status while bypassing the lengthy and complex process of a traditional IPO. The transaction typically requires the reorganization of capitalization of the acquiring company. Conversely, the private company can also be bought by the public listed company through an asset swap and share issue.
SPAC IPOs, though seemingly similar to RTOs, have multitudinous advantages over the latter in terms of structure, expenditure, and other areas. An RTO process usually requires significant transaction fees to lock down an optimal target “shell company”, and may involve additional due diligence fee paid to intermediary agencies; SPAC IPOs, however, construct blank-check companies to raise capital in order to merge private companies with high potentials, therefore bypassing the need for hefty due-diligence and transaction costs.
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