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by Stockwatch Business Reporter

The TSX Venture Exchange fell 28.27 points to 789.52 Wednesday. Benoit Chotard's halted capital pool shell, Orletto Capital Inc. (OLE), has filed a preliminary prospectus for a $6-million to $10-million offering of eight million to 13,333,333 units at 75 cents. The shell is selling the financing through Richardson GMP Ltd., Industrial Alliance Securities Inc. and Mackie Research Capital Corp.

For its qualifying transaction, Orletto is acquiring Devonian Health Group Inc., a Quebec-based developer of prescription drugs and cosmetics based on spinach thylakoids. (The thylakoid is the part of a plant cell that is responsible for photosynthesis.) The holders of Orletto's 5,493,000 shares will receive 0.3641 share of the resulting issuer for each Orletto share held, so they will own two million shares on closing of the QT. Meanwhile, Devonian's current shareholders will receive 38 million shares of the resulting issuer.

Devonian is developing a product called Thykamine, for the treatment of ulcerative colitis (a type of bowel inflammation) and atopic dermatitis (a type of skin inflammation). It has already conducted phase 1 and phase 2a clinical trials in Germany. It has also begun discussions with Health Canada and the U.S. Food and Drug Administration to determine the requirements for a North American investigational new drug application.

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