Regulating the Reverse Takeover

Jason Brock

ABSTRACT

The reverse takeover is an important financing vehicle for small and medium-sized enterprises. Sometimes referred to as a "backdoor listing," the reverse takeover has traditionally provided such enterprises with a fast and cost-effective method of accessing public markets. Recent developments suggest that regulators are on the verge of establishing more formal mechanisms for regulating the reverse takeover. This article argues that regulatory reform should not force the reverse takeover into extinction by transforming it into a full-blown IPO simply in order to protect investors from risky investments.

------------------------------------------------------------------------------------------

Citation: (2002) 60(1) U.T. Fac. L. Rev. 1.
Copyright © 2002. University of Toronto Faculty of Law Review.
All rights reserved.