Hey Tri. The ASX frightened the rules up to stop the small tech...

Hey Tri. The ASX frightened the rules up to stop the small tech start ups and speccy miners. It zeems to have worked. RTO are down heaps this year since changes late last year. Maybe you need to drop it and strike on your own. It's very complex. From what I know the accountants make a bucket. Check this out.

Source for following mondaq.com.au

The ASX has amended certain Listing Rules relating to reverse takeovers effective 1 December 2017.

These amendments introduce new shareholder approval rules and notice requirements.

New shareholder approval requirements

The Listing Rules require a shareholder approval for the issue of securities which exceed 15% of the listed entity's fully paid ordinary capital (over a 12 month period). Previously, certain exceptions applied to these Listing Rules where securities were issued under a reverse takeover, a scheme of arrangement, or to fund those transactions.

The Listing Rules have been amended so that the exceptions no longer apply with respect to reverse takeovers. Under the new rules, listed entities must obtain shareholder approval for a reverse takeover if the total number of securities issued/to be issued, is equal to or greater than the total number securities on issue in the issuer/bidder.

This additional regulatory burden is aimed at addressing the dilution of issuer/bidder shareholders. These requirements will continue to make reverse takeovers less attractive as a potential transaction structure, however, given the relatively high threshold imposed, only a small number of transactions should be affected by these requirements.

In simple terms, they made it tough on the small end of town.