Comment by stu2b50
4 years ago
>So I looked it up and basically it looks like they acquired a company which was ALREADY listed on NASDAQ then renamed it
Not just any company, a Spac. Special purpose acquisition company. That's their purpose, they're not actually companies, but blank check investment vehicles.
It's a way to go public without an IPO. And unlike reverse mergers with actual companies spacs are clean since they're shell companies.
They're neither shady nor unusual, though.
Reverse Takeovers (RTOs) are super-common in Australia. A lot of broken mining companies whose exploration came up blank wind up sitting around still with a symbol on the ASX. This is used as an easy way to list - although the prognosis is not normally good (i.e. anyone evading the scrutiny of a listing starts a bit behind the 8-ball). Given how expensive and complex listing is, it's not the worst thing in the world.