L1 to H1 transfer


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I am L1-B visa which got expired on Nov 9th 2012, but i have a valid i-94 till jul 2013. My employer has applied for extension which is still pending with decision. If my visa is denied my employer will send me to Canada to work for the same client located there.

If apply for H1 visa in April for this quota while staying in US, can i leave to Canada before the decision for H1 is taken by USCIS and come back to US in October after it got approved and by getting stamped in Canada?

Need some suggestions on this. I appreciate the help. Thanks.

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