{"id":119,"date":"2020-04-01T20:42:56","date_gmt":"2020-04-01T12:42:56","guid":{"rendered":"http:\/\/charltonsnaturalresources.com\/?page_id=119"},"modified":"2021-03-03T15:11:03","modified_gmt":"2021-03-03T07:11:03","slug":"rtos-under-the-hong-kong-stock-exchange-listing-rules","status":"publish","type":"page","link":"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/reverse-takeovers\/rtos-under-the-hong-kong-stock-exchange-listing-rules\/","title":{"rendered":"RTOs under the HKEX Listing Rules"},"content":{"rendered":"[et_pb_section fb_built=&#8221;1&#8243; custom_padding_last_edited=&#8221;on|desktop&#8221; admin_label=&#8221;ContentWrapper2&#8243; module_id=&#8221; &#8221; module_class=&#8221;content-wrapper2&#8243; _builder_version=&#8221;4.0.5&#8243; background_color=&#8221;#ffffff&#8221; custom_padding=&#8221;0px||0px|||&#8221; custom_padding_tablet=&#8221;50px|0|50px|0&#8243; custom_padding_phone=&#8221;&#8221; transparent_background=&#8221;off&#8221; padding_mobile=&#8221;off&#8221; make_fullwidth=&#8221;off&#8221; use_custom_width=&#8221;off&#8221; width_unit=&#8221;on&#8221;][et_pb_row column_structure=&#8221;2_3,1_3&#8243; use_custom_gutter=&#8221;on&#8221; gutter_width=&#8221;1&#8243; module_class=&#8221;main-content2&#8243; _builder_version=&#8221;4.4.3&#8243; width=&#8221;100%&#8221; max_width=&#8221;100%&#8221; z_index_tablet=&#8221;500&#8243; box_shadow_horizontal_tablet=&#8221;0px&#8221; box_shadow_vertical_tablet=&#8221;0px&#8221; box_shadow_blur_tablet=&#8221;40px&#8221; box_shadow_spread_tablet=&#8221;0px&#8221;][et_pb_column type=&#8221;2_3&#8243; _builder_version=&#8221;3.0.47&#8243; custom_padding=&#8221;|||&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Breadcrumbs&#8221; module_class=&#8221;breadcrumb-wrapper&#8221; _builder_version=&#8221;3.27.4&#8243;]<div class=\"breadcrumb\">\r\n<ul><li><a href=\"\/\">Home<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/' title='M &#038; A'>M &#038; A<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/reverse-takeovers\/' title='Reverse Takeovers'>Reverse Takeovers<\/a><\/li><li><span>RTOs under the HKEX Listing Rules<\/span><\/li><\/ul>\r\n<\/div>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;Section Title&#8221; _builder_version=&#8221;4.4.3&#8243; global_module=&#8221;229966&#8243;]<h2 class=\"section-title\">M &#038; A<\/h2>\r\n[\/et_pb_text][et_pb_text admin_label=&#8221;ContentMenuBar1&#8243; _builder_version=&#8221;4.4.3&#8243;]<div class=\"content-menubar\">\r\n<div class=\"page-menu-panel\">\r\n<h3>M &#038; A<\/h3>\r\n<span class=\"hamburger\"><\/span>\r\n<\/div>\r\n<ul class=\"cm-parent\"><li class=\"page_item page-item-95\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/private-international-acquisitions\/\">Private International Acquisitions<\/a><\/li>\n<li class=\"page_item page-item-96 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/acquisitions-prc\/\">Acquisitions in the PRC<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-107\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/acquisitions-prc\/approval-processes\/\">Governmental Approval Processes for PRC Acquisitions<\/a><\/li>\n\t<li class=\"page_item page-item-108\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/acquisitions-prc\/documentation-approval-timing\/\">Documentation, Approval Process and Timing<\/a><\/li>\n\t<li class=\"page_item page-item-109\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/acquisitions-prc\/foreign-exchange-issues\/\">Foreign Exchange Issues<\/a><\/li>\n\t<li class=\"page_item page-item-110\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/acquisitions-prc\/additional-information-for-listed-companies\/\">Additional Information for Listed Companies<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-97 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/due-diligence\/\">Due Diligence<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-115\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/due-diligence\/acquisition-of-exploration-project-or-joint-venture-partnership\/\">Acquisition of Exploration Project or Joint Venture Partnership<\/a><\/li>\n\t<li class=\"page_item page-item-116\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/due-diligence\/acquisition-of-producing-properties\/\">Acquisition of Producing Properties<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-98\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/public-market-offers\/\">Public Market Offers &#8211; Hong Kong<\/a><\/li>\n<li class=\"page_item page-item-99 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/reverse-takeovers\/\">Reverse Takeovers<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-119\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/reverse-takeovers\/rtos-under-the-hong-kong-stock-exchange-listing-rules\/\">RTOs under the HKEX Listing Rules<\/a><\/li>\n\t<li class=\"page_item page-item-120\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/reverse-takeovers\/exchanges-discretion\/\">HKEX\u2019s Discretion<\/a><\/li>\n\t<li class=\"page_item page-item-121\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/reverse-takeovers\/how-does-the-exchange-look-at-change-in-control\/\">How does the Exchange look at \u201cChange in Control\u201d?<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-100\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/acquisitions-or-disposals-by-hong-kong-listed-companies\/\">Acquisitions or Disposals by Hong Kong Listed Companies<\/a><\/li>\n<\/ul>\r\n<\/div>[\/et_pb_text][et_pb_text admin_label=&#8221;Title&#8221; _builder_version=&#8221;4.4.3&#8243;]<h1 class=\"content-title\">RTOs under the HKEX Listing Rules<\/h1>[\/et_pb_text][et_pb_text admin_label=&#8221;Content&#8221; _builder_version=&#8221;4.9.0&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221;]<p>Under the HKEX Listing Rules of the HKEX, an RTO is defined as an acquisition or series of acquisitions by a listed issuer which, in the opinion of the HKEX, constitutes, or is part of a transaction and\/or arrangement or series of transactions and\/or arrangements which constitutes, an attempt to achieve a listing of the acquisition targets and a means to circumvent the requirements for new applicants under the HKEX Listing Rules.  <\/p>\r\n<p>The HKEX will first apply the <strong>bright line tests<\/strong> to determine whether the transaction(s) constitute a RTO. Transactions which fall within the test will be considered a RTO and will be treated as a new listing application. Transactions falling outside the bright line tests may still constitute RTOs under the <strong>principle-based test<\/strong>, if the HKEX considers the transactions to be an attempt to list assets in circumvention of the requirements for new listings under the HKEX Listing Rules. Where the listed issuer can demonstrate that it is not seeking to list assets in circumvention of the requirements for new listings, the HKEX may regard the acquisition(s) as an extreme transaction if certain conditions are satisfied. <\/p>\r\n<p>To qualify as an extreme transaction either:<\/p>\r\n<ol style=\"list-style-type:lower-roman !important;\">\r\n<li>the issuer must have been under the control of the same person or group of persons for at least 3 years and the acquisition(s) must not involve a change in control or <em>de facto <\/em>control of the issuer (other than as the level of its subsidiaries); or <\/li>\r\n<li>the issuer has been operating a principal business of a substantial size (which includes an issuer with an annual revenue or total asset value of HK$1 billion) according to its latest published financial statements) which will continue after the transactions. <\/li>\r\n<\/ol>\r\n<p>Where an acquisition(s) constitutes an extreme transaction, the listed issuer will be required to comply <em>inter alia <\/em>with the requirements for very substantial transactions under Chapter 14 of the HKEX Listing Rules (Chapter 19 of the GEM Listing Rules) and appoint a financial adviser to perform due diligence on assets subject to the acquisition(s). <\/p>\r\n<p><u>The Bright Line Tests <\/u><\/p>\r\n<p>The HKEX Listing Rules set out bright line tests for two types of reverse takeovers which are transactions involving: <\/p>\r\n<ol style=\"list-style-type:lower-roman !important; padding-left:20px;\">\r\n<li>a change in control (i.e. 30%) of a listed issuer (other than at the level of its subsidiaries); and<\/li>\r\n<li>a very substantial acquisition (i.e. acquisition(s) where any percentage ratio is 100% or more) from the incoming controlling shareholder either at the time of the change in control or within the following 36 months. <\/li>\r\n<\/ol>\r\n<p>A very substantial acquisition within the bright line tests will be considered a reverse takeover and the listed issuer will be required to follow the procedures for a new listing applicant on the HKEX, including the preparation of a listing document and the appointment of a sponsor.<\/p>\r\n<p><u>The Principle-based Test <\/u><\/p>\r\n<p>The HKEX will apply the principle-based test to transactions which fall outside the bright line tests for example where there is no change of control.<\/p>\r\n<p>The principle-based test defines a reverse takeover as an acquisition or a series of acquisitions by a listed issuer which, in the opinion of the HKEX, constitutes, or is part of a transaction and\/or arrangement or series of transactions and\/or arrangements, which constitute<strong>:<\/strong><\/p>\r\n<ol style=\"list-style-type:lower-roman !important; padding-left:20px;\">\r\n<li><strong>an attempt to achieve a listing of the assets to be acquired <\/strong>(and in the context of a series of transactions, assets already acquired); and<\/li>\r\n<li><strong>a means to circumvent the requirements for new listing applicants <\/strong>set out in Chapter 8 of the HKEX Listing Rules (GEM Chapter 11).<\/li>\r\n<\/ol>\r\n<p>In assessing whether the transaction is a RTO under the principle-based test, the HKEX will take into account: <\/p>\r\n<ul style=\"padding-left:20px;\">\r\n<li>the size of the acquisition relative to the issuer; <\/li>\r\n<li>whether the acquisition will lead to a fundamental change in the issuer\u2019s principal business; <\/li>\r\n<li>the nature and scale of the listed issuer\u2019s business before the acquisition(s); <\/li>\r\n<li>the quality of the assets acquired \/ to be acquired; <\/li>\r\n<li>any change in control or <em>de facto<\/em> control of the listed issuer (other than at the level of its subsidiaries); and <\/li>\r\n<li>other events and transactions which, together with the acquisition or series of acquisitions, form a series of transactions or arrangements (if they take place within reasonable proximity of each other, normally a 36-month period, or are otherwise related) will be considered together in determining whether there is a RTO.<\/li>\r\n<\/ul>\r\n<p>The difficulty that this rule poses in the context of a restructuring is that the net worth of companies following a restructuring is generally not that large. Hence almost any acquisition of a reasonable size is likely to trigger the RTO rules retrospectively. The first hurdle faced by a listed issuer following a restructuring is the requirement under the HKEX Listing Rules for listed companies to carry out sufficient operations or have assets of a sufficient value to justify their continued listing which effectively renders cash companies unsuitable for continued listing. Since no further additions to the business can be made for 36 months (unless the assets acquired or the enlarged group are able to satisfy the listing criteria for new listings), it will be necessary to ensure that the business is sustainable for the 36 month period.<\/p>\r\n<p><u>Large-scale Issue of Securities<\/u><\/p>\r\n<p>Under the HKEX Listing Rules, where a proposed large scale issue of new securities by a listed issuer for cash to acquire and\/or develop a new business, which, in the opinion of the HKEX, is a means to circumvent the requirements for new listing applicants under the HKEX Listing Rules, the HKEX may refuse to grant listing approval for the shares to be issued. The HKEX will take into consideration not only the size of the equity fundraising, but all other relevant factors including the nature and scale of the issuer\u2019s business, its financial position, its business plans and intended use of proceeds and any change in control or <em>de facto<\/em> control of the issuer. This Rule was introduced in response to the prevalence of backdoor listings in Hong Kong. <\/p>\r\n<p>The HKEX has set out guidance on such transactions in the HKEX <a href=\"https:\/\/en-rules.hkex.com.hk\/sites\/default\/files\/net_file_store\/GL105-19.pdf\" >Guidance Letter GL105-19<\/a>.  <\/p>[\/et_pb_text][et_pb_text admin_label=&#8221;SubM-sibling&#8221; _builder_version=&#8221;4.4.3&#8243;]<div class=\"page-submenu\"> \r\n<ul><li class=\"page_item page-item-119\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/reverse-takeovers\/rtos-under-the-hong-kong-stock-exchange-listing-rules\/\">RTOs under the HKEX Listing Rules<\/a><\/li>\n<li class=\"page_item page-item-120\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/reverse-takeovers\/exchanges-discretion\/\">HKEX\u2019s Discretion<\/a><\/li>\n<li class=\"page_item page-item-121\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/reverse-takeovers\/how-does-the-exchange-look-at-change-in-control\/\">How does the Exchange look at \u201cChange in Control\u201d?<\/a><\/li>\n<\/ul>\r\n<\/div> [\/et_pb_text][et_pb_text admin_label=&#8221;News Title&#8221; module_class=&#8221;content2-news-title&#8221; _builder_version=&#8221;4.4.3&#8243;]<h1 class=\"content-subtitle\">Read our latest News<\/h1>[\/et_pb_text][et_pb_blog fullwidth=&#8221;off&#8221; posts_number=&#8221;6&#8243; include_categories=&#8221;23&#8243; show_author=&#8221;off&#8221; show_categories=&#8221;off&#8221; show_excerpt=&#8221;off&#8221; show_pagination=&#8221;off&#8221; admin_label=&#8221;News Thumbs&#8221; module_class=&#8221;cu-blog&#8221; _builder_version=&#8221;4.4.2&#8243;][\/et_pb_blog][et_pb_text admin_label=&#8221;Click more news&#8221; _builder_version=&#8221;4.4.2&#8243;]<div class=\"bottom-click-more\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/news\/\">Click here to read more News<\/a><\/div>[\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;1_3&#8243; _builder_version=&#8221;3.25.3&#8243; custom_padding=&#8221;|||||false&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_image src=&#8221;\/legal\/m-and-a\/reverse_takeovers.jpg&#8221; admin_label=&#8221;Side Hero&#8221; module_class=&#8221;side-hero-wrapper&#8221; _builder_version=&#8221;4.4.3&#8243;][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section]","protected":false},"excerpt":{"rendered":"<p><ul><li><a href=\"\/\">Home<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/' title='M &#038; A'>M &#038; A<\/a><\/li><li><a href='https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/reverse-takeovers\/' title='Reverse Takeovers'>Reverse Takeovers<\/a><\/li><li><span>RTOs under the HKEX Listing Rules<\/span><\/li><\/ul> M &#038; A M &#038; A <ul class=\"cm-parent\"><li class=\"page_item page-item-95\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/private-international-acquisitions\/\">Private International Acquisitions<\/a><\/li>\n<li class=\"page_item page-item-96 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/acquisitions-prc\/\">Acquisitions in the PRC<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-107\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/acquisitions-prc\/approval-processes\/\">Governmental Approval Processes for PRC Acquisitions<\/a><\/li>\n\t<li class=\"page_item page-item-108\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/acquisitions-prc\/documentation-approval-timing\/\">Documentation, Approval Process and Timing<\/a><\/li>\n\t<li class=\"page_item page-item-109\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/acquisitions-prc\/foreign-exchange-issues\/\">Foreign Exchange Issues<\/a><\/li>\n\t<li class=\"page_item page-item-110\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/acquisitions-prc\/additional-information-for-listed-companies\/\">Additional Information for Listed Companies<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-97 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/due-diligence\/\">Due Diligence<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-115\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/due-diligence\/acquisition-of-exploration-project-or-joint-venture-partnership\/\">Acquisition of Exploration Project or Joint Venture Partnership<\/a><\/li>\n\t<li class=\"page_item page-item-116\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/due-diligence\/acquisition-of-producing-properties\/\">Acquisition of Producing Properties<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-98\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/public-market-offers\/\">Public Market Offers &#8211; Hong Kong<\/a><\/li>\n<li class=\"page_item page-item-99 page_item_has_children\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/reverse-takeovers\/\">Reverse Takeovers<\/a>\n<ul class='children'>\n\t<li class=\"page_item page-item-119\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/reverse-takeovers\/rtos-under-the-hong-kong-stock-exchange-listing-rules\/\">RTOs under the HKEX Listing Rules<\/a><\/li>\n\t<li class=\"page_item page-item-120\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/reverse-takeovers\/exchanges-discretion\/\">HKEX\u2019s Discretion<\/a><\/li>\n\t<li class=\"page_item page-item-121\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/reverse-takeovers\/how-does-the-exchange-look-at-change-in-control\/\">How does the Exchange look at \u201cChange in Control\u201d?<\/a><\/li>\n<\/ul>\n<\/li>\n<li class=\"page_item page-item-100\"><a href=\"https:\/\/charltonsnaturalresources.com\/en\/mergers-and-acquisitions\/acquisitions-or-disposals-by-hong-kong-listed-companies\/\">Acquisitions or Disposals by Hong Kong Listed Companies<\/a><\/li>\n<\/ul> RTOs under the HKEX Listing RulesUnder the HKEX Listing Rules of the HKEX, an RTO is defined as an acquisition or series of acquisitions by a listed issuer which, in the opinion of the HKEX, constitutes, or is part of a transaction and\/or arrangement or series of transactions and\/or arrangements which constitutes, an attempt to achieve [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":99,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<!-- wp:paragraph -->\r\n<p>The Hong Kong Stock Exchange Listing Rules (\"Listing Rules\") introduced RTOs as a specific category of \"notifiable transaction\".<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The definition of an RTO is <em>an acquisition or a series of acquisitions<\/em> by a listed issuer which, in the opinion of the Hong Kong Stock Exchange, constitutes, or is part of a transaction or arrangement or series of transactions or arrangements which constitute:<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:list -->\r\n<ul><li><em>An attempt to achieve a listing of the assets to be acquired<\/em>; and<\/li><li><em>A means to circumvent the requirements for new applicants<\/em> set out in Chapter 8 of the Listing Rules. (our emphasis added)<\/li><\/ul>\r\n<!-- \/wp:list -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The Listing Rules do not however define the specific transactions which amount to an RTO. Instead, the Listing Rules set out two examples of transactions which will normally constitute RTOs:<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:list -->\r\n<ul><li>An acquisition or a series of acquisitions of assets by a listed issuer which <em>constitute a very substantial acquisition (\"VSA\")<\/em> under the Listing Rules where there is, or which will result in, a change of control (as defined in the Hong Kong Takeovers Code (i.e. 30%)) of the listed issuer (other than at the level of its subsidiaries); or<\/li><li>An acquisition or a series of acquisitions of assets by a listed issuer which <em>constitute a VSA<\/em> from a person or group (or their associates) under any agreement or arrangement entered into by the listed issuer within <em>24 months<\/em> of that person or group gaining <em>control<\/em> of the listed issuer (where the original transaction did not constitute an RTO).<\/li><\/ul>\r\n<!-- \/wp:list -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The period during which a series of transactions must be aggregated for the purposes of the above tests is 24 months. As a result, acquisitions in the 24 months after a change in control, which individually or together cross the threshold of a VSA, will constitute an RTO and be treated as a new listing.<\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The difficulty that this rule poses in the context of a restructuring is that the net worth of companies following a restructuring is generally not that large. Hence almost any acquisition of a reasonable size is likely to trigger the RTO rules retrospectively. The first hurdle faced by a listed issuer following a restructuring is the requirement under the Listing Rules for listed companies to carry out sufficient operations or have assets of a sufficient value to justify their continued listing which effectively renders cash companies unsuitable for continued listing. Since no further additions to the business can be made for 24 months (unless the assets acquired or the enlarged group are able to satisfy the listing criteria for new listings), it will be necessary to ensure that the business is sustainable for the 24 month period.<\/p>\r\n<!-- \/wp:paragraph -->","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"categories":[27],"class_list":["post-119","page","type-page","status-publish","hentry","category-ma","cat-27-id"],"_links":{"self":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/119","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/comments?post=119"}],"version-history":[{"count":15,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/119\/revisions"}],"predecessor-version":[{"id":232871,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/119\/revisions\/232871"}],"up":[{"embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/pages\/99"}],"wp:attachment":[{"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/media?parent=119"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/charltonsnaturalresources.com\/en\/wp-json\/wp\/v2\/categories?post=119"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}