In remarks to the St. John’s Board of Trade, TSX Group CEO Richard Nesbitt encouraged Newfoundland companies to consider Canada’s capital markets as an alternative for raising capital and building on the number of small and medium sized public companies from the province.

“This province, and especially this city, are increasingly entrepreneurial. The mining, energy and infrastructure developments that have taken place in this province, and loom ahead, have created a marvellously warm and fertile environment for entrepreneurs,” said Nesbitt.

“And we at TSX Group can provide help in making the transition from small private firm to growing public company with our mentoring programs, our workshops, our strong standards, and market tools like our Capital Pool Company Program. Last year, more than $60 million was raised by CPCs across Canada. The CPC is suited to Newfoundland. I would certainly recommend that we open a discussion on the CPC program in Newfoundland and Labrador. It puts together investors with capital markets experience and entrepreneurs who have ideas, energy and ambition but need help.”

Nesbitt pointed out that large corporations have multiple sources of capital — public markets, banks and, increasingly, deep pools of private capital. “But it’s the smaller and medium sized enterprises that generate the new jobs and the new products that are so important in the provinces that are working to diversify their economies, like Newfoundland,” added Nesbitt.

There are 11 companies based in Newfoundland — six are listed on TSX Venture Exchange with a total market capitalization of $318.3 million.

Five issuers are listed on Toronto Stock Exchange with a total market cap of $3.5 billion.

Newfoundland issuers have done eight financings on TSX Venture Exchange from January to August 2006 for a total of $8.3 Million raised. They were all private placement financings.