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by Stockwatch Business Reporter

The TSX Venture Exchange closed up 3.24 points to 784.95 Thursday. Michael Atkinson's halted NEX shell, Knol Resources Corp. (NOL), plans to acquire Kewa Financial Inc., a Toronto-based financial holding company. The terms of the deal are not yet available, but the shell plans to roll back at a ratio between 1 for 14 and 1 for 16, leaving it with 3,481,029 to 3,978,319 postconsolidated shares issued.

Kewa Financial was founded by David Wiley in March, 2014. Its main business is providing reclamation bonds to "carefully selected U.S.-based mining companies." Currently, Kewa is working on two acquisitions of its own. It does not say which entities it is targeting, but once it closes both acquisitions, it will own an environmental reclamation services company, two insurance companies and one reinsurance company. Kewa's deal with the shell is conditional on the completion of Kewa's two ancillary acquisitions.

To finance its two acquisitions, Kewa must sell an $8.64-million private placement of subscription receipts. It has not yet set the subscription price. It will get some money-raising help from two finders, Sprott Private Wealth LP and an unnamed Sprott affiliate. The Sprott group is Knol Resources' largest shareholder, with 9,033,791 shares or 16.21 per cent as of May 10, 2016. Shell-maker Mr. Atkinson was the vice-president of Sprott Resource Lending Corp.'s predecessor, Quest Capital Corp. (Sprott Resource Lending merged with Sprott Inc. (SII: $2.55) in July, 2013.)

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