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by Stockwatch Business Reporter

The TSX Venture Exchange fell 9.58 points to 771.06 Wednesday. David Brett's halted capital pool shell, Inovent Capital Corp. (IVQ), and its qualifying transaction target, Jim Scott's Canada Jetlines Ltd., have filed a preliminary prospectus (very preliminary) to raise $50-million to launch an ultra-low-cost airline in Western Canada. Euro Pacific Canada Inc. and AltaCorp Capital Inc. are in charge of selling the offering. The companies and their brokers have yet to determine the share price of the offering.

Mr. Brett's Inovent will ask shareholders at a Dec. 19 meeting to approve the QT and a rollback of between 1:5 and 1:7.5. After the consolidation, the shell will acquire Canada Jetlines for 7,112,735 postconsolidated shares, and also change its name to that of its target. The companies have reserved the ticker symbol JLX. The shares from the $50-million prospectus offering will convert into shares of Canada Jetlines when the QT closes. The target plans to become an ultra-low-cost carrier operating from a base at the Vancouver International Airport. So far, Canada Jetlines has no details about its route plans, but those will arrive next month. "Route plans" and "routes" are not the same thing. The company hopes to receive its licence from the Canadian Transport Agency to operate an airline in April, 2015, just four short months away. That same month, Canada Jetlines plans to acquire two second-hand Boeing 737 Classic aircraft -- production ran from 1984 to 1999 -- at a cost of $6.94-million. It hopes to increase its "fleet" to eight aircraft not long after commencing operations. In the unlikely event that all the company's plans stay on schedule, passengers will be boarding flights operated by Canada Jetlines next summer. Again, all of these plans are based on the assumption that the brokers will be able to sell $50-million worth of shares. Last year, Salman Partners Inc. planned to take part in selling financings of up to $100-million for Canada Jetlines, which had then hoped to be transporting passengers by now, but the broker failed to attract enough investors and has since moved on to more promising deals such as Slyce Inc. (SLC: $0.94).

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