Mavrix TSX Venture Graduation Fund has filed a preliminary prospectus in connection with and initial public offering of units.

Mavrix Fund Management Inc. says the fund has been created to provide investors with the potential for capital appreciation through exposure to an actively managed portfolio of growth-oriented, small capitalisation companies, selected primarily from the TSX Venture Exchange.

The fund will invest at least 80% of its total assets in issuers either currently listed on the TSX Venture Exchange or which were listed on the TSX Venture Exchange within the last 12 months but have since graduated to a Toronto Stock Exchange listing, Mavrix says.

As part of its investment process, the manager will focus on issuers that have been included in the TSX Venture 50. The fund may also invest up to 20% of its total assets in other small capitalization issuers listed on the TSX.

The prospectus seeks to qualify the distribution of warranted units each consisting of one trust unit of the fund, and one half of one fund unit purchase warrant at a price of $10 per warranted unit.

Each warrant entitles the holder to purchase one fund unit at a price of $10.25 on June 15, 2009.

The maximum size of the offering is $50 million and the syndicate is being co-led by TD Securities Inc., CIBC World Markets Inc. and RBC Dominion Securities Inc. and includes Dundee Securities Corp., Scotia Capital Inc., BMO Nesbitt Burns Inc., Berkshire Securities Inc., Blackmont Capital Inc., Canaccord Capital Corp., Desjardins Securities Inc., MGI Securities Inc., Wellington West Capital Inc., GMP Securities L.P., Industrial Alliance Securities Inc., IPC Securities Corporation, Laurentian Bank Securities Inc. and Raymond James Ltd.