The arrangement agreement between Allen-Vanguard Corp. and Tailwind Financial Inc., a special purpose acquisition company in which Jovian Capital Corp. has an indirect interest, will not be pursued, Jovian said Monday.

Jovian subsidiary JovFunds Management Inc. owns 44% of Parkwood Holdings Ltd., which has an indirect interest in Tailwind. JovFunds’ total investment in Tailwind, including directly-held non-refundable securities and its share of various operating and regulatory costs to date, is approximately $3.5 million.

Jovian expects to reserve approximately $3.5 million in its fourth quarter ended March 2009 in connection with this investment, the company says.

The Jovian group of wealth and asset management companies includes AlphaPro Management Inc., BetaPro Management Inc., Horizons Funds Inc., JovFunds Inc., JovFunds Management Inc., JovInvestment Management Inc., Leon Frazer & Associates Inc., MGI Securities (USA) Inc., MGI Wealth, T.E. Wealth and Felcom Data Services Inc.

IE