CANNAINVESTOR Magazine U.S. Privately Held September 2018 | Page 96

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Spatafora

Reverse Takeovers

By Ryan Hum

In this month's article, we will be taking a look at reverse takeovers (here on in interchangeably referred to as an RTO). Sometimes people will refer to an RTO as a reverse merger or a reverse initial public offering. The reason we are going to take look at RTO’s is that they can and have an impact within the cannabis investment space and it is in your best interest to understand how these work and can unfold for your potential investments.