VANCOUVER, BC – TIMIA Capital Corporation (TSX-V:TCA) (“TIMIA” or the “Company”) today announced a second closing of $1.5 Million, and TIMIA’s first institutional investor as part of its Participation Financing Model (“PFM”), bringing the PFM investment total to over $2.1 million.
As announced recently, the Participation Financing Model (“PFM”) allows qualified investors to purchase a specified percentage of future cash flows from TIMIA’s current portfolio companies, thereby increasing the amount of non-dilutive capital available to the Company, and creating accretive value for shareholders. As part of TIMIA’s active management process, TIMIA will retain control, title and security position over the underlying portfolio investments.
“This accretive transaction brings substantial upfront non-dilutive capital into TIMIA and provides a profitable income stream over the term of the investment for shareholders,” said Mike Walkinshaw, CEO of TIMIA.
Under the terms of the Closing, PFM investors have purchased a specified percentage of future cash flows from TIMIA’s existing portfolio companies, based upon a target yield. The yield will fluctuate relative to the performance of the underlying investments. TIMIA has more than $10 million on its balance sheet for investments, both deployed and in cash and focuses on the software as a service (or SaaS) industry. TIMIA has made eight investments into private software companies since inception in 2015, and has successfully exited two of them, providing a combination of monthly yield and periodic gains.
About TIMIA Capital Corporation
TIMIA Capital Corporation is a specialty finance company that provides revenue financing to technology companies in exchange for a stream of payments based on revenue. The alternative financing option complements both debt and equity financing, while allowing entrepreneurs to retain control of their business. TIMIA’s target market is the fast-growing business-to-business software-as-a-service (SaaS) segment. TIMIA is managed by a seasoned investment team with a track record of originating and managing debt and equity investments, as well as monitoring and compliance.