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by Stockwatch Business Reporter

The TSX Venture Exchange added 7.95 points to 1,029.28 Wednesday. Ryan Danard's nearly expired capital pool shell, Cana Venture Capital Corp. (VCC), and Dennis Nerland's halted Arkadia Capital Corp. (AKC), another capital pool shell approaching its 24-month QT deadline, will merge next week, providing Cana shareholders approve the merger.

The merged shell will trade under the Arkadia name and Cana shareholders will receive 0.60434 of an Arkadia share for each Cana share held. There is no change for Arkadia shareholders. The merged company will have 7,868,014 shares outstanding, of which 76.3 per cent will belong to the original Arkadia shareholders, and 23.7 per cent will belong to the original Cana shareholders. The division of shares probably has to do with how much working capital each shell will bring to the merged company. Cana had a working capital of $212,294 as of Oct. 31, 2013, and Arkadia had $609,940 as of Nov. 30, 2013. Cana anticipates the merged shell will have around $700,000. The main purpose of the merger is to extend the time in which the merged capital pool shell can close a qualifying transaction. The shells anticipate closing the merger March 11, 2014, after which the exchange will grant the merged shell 12 months to close a QT. Without the merger, both shells would have to delist or transfer to the NEX shortly.

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