A new genus and species are established for a Hemiascomycete growing on Corticium microsporum, a member of the Thelephoraceae. The fungus is known from three collections made in different localities in Ontario. It is characterized by a limited mycelial growth in the subhymenium of the Basidiomycete where it also produces more or less elongate and coiled ascogonial branches and hypha-like antheridial branches, each female branch producing a single ascus which grows through the hymenium of the supporting fungus and protrudes prominently beyond the basidia. Phylogeny in the lower Ascomycetes is considered briefly and evidence is presented indicating relationship of the fungus in question with Dipodascus and Endomyces.