Hey, Syl98. My own thoughts on the matter, FWIW, is that is a lot simpler and takes a shorter time period to go public by doing a reverse takeover of a publicly listed company.
Advantages with SBX:
-I believe they have cash (from the sale of their previous business) and only cash, so they're liquid and fairly clean. Merging the two entities would also therefore be relatively simple (especially as compared to merging with another company with an active business).
-they have a TSE listing, which is the most prestigious exchange in Canada but also tougher to list on initially because of market cap, asset and income requirements. TSE still has to approve this deal if it happens.
-they avoid a lot of the costs associated with trying to obtain a new listing, including initial listing fees, etc.
- shorter time frame to complete the process (although it would still be several months since existing s/h have to be notified, vote, etc.). Since SBX's annual meeting should be coming up in a few months, they will probably try to time the vote on this at the same time (saves money too).
- a reverse takeover also results in the fact the CDPlus shareholders shares are "free trading" - no one year and up (depending) hold on CDPlus shares which they would have if they went public on their own. This is a significant advantage to them - mainly to those who are not insiders. More liquidity.
This deal would make a lot of sense to CDPlus shareholders, IMHO, keeping in mind that I don't actually know the terms of the deal - a gap in dese here comments.
Regards, t. |
