FTO（Funding Takeover） refers to Pre-IPO plus RTO，the business combination between private funding and reverse merger prior to listing. It will raise funds for special purpose companies from strategic investors as well as complete the reverse merger transaction with overseas "shell" companies. Through this method, the companies are able to realize their listing and initial financing in a relative short period.

      Advantages

- Comparing to the traditional RTO, FTO can facilitate the special purpose
   companies to realize their listing and private financing at the same time.
   It began to replace the reverse merger business and become the main US
   listing channel for China private companies.
- FTO is more cost-effective. The whole process will be completed in only 90-120
   days.
- FTO proposals are defined based on the companies' actual situation, which can
   be of great help for the companies to avoid the impact from stock market
   changes and to complete listing & financing with Zero Risk.
- The asset evaluation for the special purpose companies from the FTO
   investors should be relative high. The shareholder's value can, therefore, be
   maximized.

     Our Service

- As a strategic investor, we will invest private funds on the special purpose
   companies.
- We will help the companies accomplish the listing on US market and bear all the listing
   expenses, including audit fee, lawyer fee, the fee for setting up overseas
   companies, the fee for purchasing shell companies and the fee for liquidating
   shell companies, etc.
- We will bear all the market maintenance expenses in the prescriptive cooperation
   course after the companies' listing.
- We will provide the service for companies to improve their visual image, public
   relation and investor relation.
- We will continue to act as a consultant to facilitate the companies' investment,
   financing and organization restructuring, etc. for 3- 8 years after their listing.
- We will assist the companies to follow the prescriptive regulations in accordance
   with US laws, US enterprise management regulations and US financial standards.

     Flow of FTO

Conduct an investigation on the company's operation status, financial status and history in the previous year as well as evaluate development potential for the next 3 years to analyze the feasibility of their reserve merger.

Work with the company to legally adjust the accounts in accordance with US GAAP, as well as reorganize the enterprise's structure and set up overseas company.

Search, purchase and liquidate the shell company

Include financial structure, legal documents, profit model, business plan and notarial deed, etc.

US auditors will be invited to audit the company's operational and financial status of the previous 2 years and compose the formal audit report.

Complete the stock transition with the shell company and submit the requested files, e.g. 8K, Form 3, Form 4, 13D, 10Q, etc. to US Security and Exchange Commission (SEC).And then the company will go public and obtain the initial financing on the market through reserve merger.

VI design, special topic reports, press release and roadshows will be conducted at that time. Meanwhile, the public relation will be improved through promoting company's stock to investors, presenting the company's financing plan, providing financial forecasts, answering investors' questions, evaluating the potential needs and having face to face meeting with potential investors etc.