Of that money, Trudeau said his administration is providing "up to $173 million" toward Quebec-based Medicago Inc.'s vaccine candidate, and their Quebec City-based factory.
Trudeau also announced $18.2 million for Vancouver-based Precision NanoSystems, and an additional $23 million towards various early-stage vaccine candidates.
The prime minister said the Canadian government had begun distributing hundreds of thousands of rapid Covid-19 tests to provincial governments.
The investment comes as Covid-19 cases in Canada are on the rise.
"Yesterday, Canada had the highest ever number of new cases of Covid-19," Trudeau said. "We have to get these numbers down. This is serious, and everybody must do their part."
"People's lives are at stake," Trudeau added. "We can't afford to be careless or think that this virus will just go away on its own."