An upstart Chicago-based commercial real estate bank and debt brokerage is aiming for new growth after a reverse merger allowed it to become a publicly traded company.
Mag Mile Capital has merged with Myson Inc., forming a new entity known as Mag Mile Capital Inc., Commercial Observer reported.
Rushi Shah founded Mag Mile Capital in 2016 after consolidating with two other companies. Myson, which has been trading on the OTC Markets Pink over-the-counter securities exchange, had simply served as a shell company for Reddington Partners, managed by Henrik Rouf, for Mag Mile to become public. It will essentially function in the same manner for Mag Mile Capital Inc., enabling increased liquidity and more cash flow opportunities as a publicly traded company.
“Nothing changes for our business. It just allows us to grow. It allows us to consolidate, and bring talent into the business and also bring clients,” Shah told the outlet. “If someone wants to finance and we’re competing with JLL, then we can throw in stock options and warrants to our clients. We can incentivize people to use stock to do deals and that just means more deal flow for us.”
Shah will own roughly 88 percent of the new enterprise, while Rouf takes an ownership stake of about 10 percent. Mag Mile Capital raked in $1.6 million in gross profits last year, the outlet reported.
Another reason for the merger is that it expedites the process of becoming public. Typically, a company must undergo an initial public offering, which takes anywhere from six months to a year to complete.
“This essentially allows us to go public, so we don’t have to do an IPO ourselves,” Shah told the outlet. “[Myson] exists to buy companies like ours. Companies like ours go public to get currency, stock becomes the currency, and now we can go out and buy other companies, recruit people, find talent, bring people in and give them stock options and do things that public companies do to grow.”
Mag Mile Capital specializes in commercial mortgages and capital markets brokerage services, providing equity services, debt financing and other forms of financial assistance.
— Quinn Donoghue
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