Auka Capital Corp.: TSXV Conditional Approval and Filing Statement

Auka Capital Corp. (TSXV: AUK.P), a capital pool company (CPC) under Policy 2.4 of the TSX Venture Exchange (TSXV), has announced conditional approval for its proposed business combination with Dr. Phone Fix Canada Limited (DPF), constituting Auka's Qualifying Transaction. The TSXV has given the green light to the Transaction, subject to certain conditions, as outlined in Auka's Filing Statement dated November 14, 2024.



The Transaction involves the amalgamation of Auka's wholly-owned subsidiary, 2629911 Alberta Inc. (Subco), with DPF, with the amalgamated entity continuing as a wholly-owned subsidiary of Auka. Upon closing, Auka will be renamed "Dr. Phone Fix Corporation" or a similar name accepted by regulatory authorities. The exchange ratio has been updated to 11.4402330114547 fully paid and non-assessable Resulting Issuer Common Shares for every one (1) DPF Share held, at an updated deemed price of approximately $1.37 per DPF Share.



The amended terms of the Transaction also include a bridge loan of $250,000 from Auka to DPF, secured against DPF's property. The loan bears interest at a rate of prime plus 2% and will mature six months from the date of the bridge loan agreement or upon transaction closing. This loan will be converted into shares upon completion, diluting Auka's ownership but providing DPF with working capital.

The Transaction is subject to various conditions, including Exchange acceptance, receipt of requisite regulatory approvals, completion of the related brokered private placement financing for subscription receipts of DPF, and, if applicable, majority of the minority shareholder approval. Auka's common shares remain halted from trading on the TSXV until the Exchange issues its final approval bulletin, anticipated in Q1 of 2025.

Investors should note that trading in the securities of a capital pool company is highly speculative, and any information released or received with respect to the Transaction may not be accurate or complete. It is essential to review Auka's Filing Statement for detailed information on the Transaction and related matters.



As an experienced English essay writing consultant, I would advise investors to carefully evaluate the potential and challenges of Auka Capital Corp. and Dr. Phone Fix Canada Limited. The conditional approval and filing statement provide valuable insights into the Transaction's terms and conditions. However, it is crucial to consider the specific financial dynamics and long-term company valuations before making any investment decisions.