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by Stockwatch Business Reporter
The TSX Venture Exchange added 1.39 points to 944.23 Wednesday. Yesterday, after the closing bell, Ryan Danard's Cana Venture Capital Corp. (VCC) reported a plan to amalgamate with two tech companies for its qualifying transaction.
There are two separate transactions required to complete Cana's QT. First, the shell must issue 24.21 million shares for a Calgary tech company called Redfall Technologies Inc. The merged company will then pay $2.17-million cash and issue 10.3 million shares for Axiom Foreign Exchange International Partnership, another Calgary company. Redfall and Axiom are two different companies; they do not have any directors or controlling shareholders in common.
Redfall has a product called Vogogo which is an online payment processor for small businesses. It works just like PayPal and Google Wallet. According to Redfall's unaudited financials, it lost $820,178 on revenue of $25,201 in the six months ended June 30, 2013. The company's three largest shareholders, each with 27.2 per cent of Redfall's outstanding shares, are Geoff Gordon, Stan Carney and a privately held company called Say Marketing and Consulting Ltd. Mr. Gordon is an engineer and will take over as chief executive officer following the QT. It will be his first time on the board of a public company. Mr. Carney, currently chief technology officer of Redfall, will have a smaller role, without a directorship. According to his blog, he is an "idea developer" who once specialized in online payment systems, but, "Now I pretty much do anything I want." Redfall does not disclose who owns Say Marketing and Consulting. Last month, Cameron Chell's Calgary venture capital firm, Business Instincts Group Inc., reported that it spent $250,000 on an unstated number of Redfall shares. Mr. Chell is a former Calgary broker and promoter who had some trouble with the Alberta Securities Commission in 1998 (he settled on a five-year ban with strict supervision for two years if he returned), after which he moved to California to promote his tech company, FutureLink Distribution Corp., to Silicon Valley investors. Mr. Chell left FutureLink to start a similar company, after which FutureLink sued, but the two settled out of court. FutureLink later filed for bankruptcy. Mr. Chell has since returned to Calgary as a venture capitalist. He recently invested in Scott and Wade Larson's space promotion, UrtheCast Corp. (UR: $1.55), which went public at the end of June.
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