Heavy dilution is common in RTOs. Legacy shareholders in listed shells are rarely left with much, since the business being injected is usually worth far more than the empty shell it’s merging into. But 1.3% is thin even by that standard, and what happens to the rest of the pie is where this deal gets more interesting.
Somewhere in the 429 pages of the circular that Hatten Land sent to shareholders on June 30 sits a number that deserves more attention than it is likely to get: 1.3%.
That is what existing shareholders of Hatten, under judicial management since 2024, will collectively own once its $28 million reverse takeover (RTO) of Metrocon, a privately held Singapore geotechnical foundation engineering company, is completed.
