Can you apply Inland after denial of a Visitor's Visa Extension?

[tiscwslabmuz]

Sent out our visitor's visa extension application yesterday, online. Our thinking was that if we are granted the 6+ months that we requested, then we will go ahead and file a quicker Outbound application. However, if for some reason our extension request was not granted, we thought it best to file Inland so-as to avoid separation while waiting to be granted PR status. Is this possible, or are you required upon a denial of an extension request to leave Canada, without filing another application of any kind?

Thank you!