Companies in Nova Scotia have a new way to access venture capital and become listed on TSX Venture Exchange. The new Capital Pool Company Program was announced today by the Nova Scotia Securities Commission and TSX Venture Exchange. It becomes effective on March 24.

“We believe the introduction of the Capital Pool Company Program in Nova Scotia will help encourage small- and medium-size businesses to investigate the public venture capital route,” said Les O’Brien, chairman of the NSSC.

The program allows experienced directors and officers to work with junior public companies to form a capital pool company. The group would typically raise between $200,000 and $1.9 million in an initial public offering. This amount is used to seek out an investment opportunity in assets or a business with growth potential.

Capital pool companies were the most popular method for joining TSX Venture in 2004, with 87 having been launched.

.”The Capital Pool Company Program enables private entrepreneurs to access the public venture market and provides local investors the opportunity to invest in early stage companies,” said Linda Hohol, president of TSX-V.

Since its inception, the program has helped more than 1,500 companies across Canada raise money to build and enhance their growth strategy. The program had its start in Western Canada in the mid-1980s and moved to Ontario and Quebec in 2002.

With the approval in Nova Scotia, the program now has roots from coast to coast. “This approval helps TSX Venture become a true national venture capital marketplace. We certainly hope that investors in Nova Scotia and across Atlantic Canada embrace emerging companies as they grow to be future large, national Canadian companies,” said Hohol.

There are currently 17 Nova Scotia-based companies on the TSX Venture. These companies have a combined market cap of $297.2 million.