A reverse takeover is classified when any ratio is at what percentage or more?

A reverse takeover is classified as occurring when any ratio meets or exceeds the threshold of 100%. This situation typically arises when a private company acquires a publicly traded company and, in doing so, becomes publicly listed itself.

In the context of regulatory considerations, the 100% threshold signifies that the private company effectively gains complete control over the public entity in terms of asset exchange, share capital, or profit ratios, which are critical metrics for regulators assessing such transactions. This 100% level is substantial, as it indicates that the private company not only reaches the legal requirements for being classified as a takeover but also highlights the significant nature of the transaction.

A clear understanding of this classification threshold is vital for compliance with regulations surrounding mergers and acquisitions, reflecting the need for scrutiny when ownership transfer approaches full control.