Vancouver, B.C., March 29th, 2017 — TIMIA Capital Corp. (“TIMIA” or the “Company”) (TSX-V:TCA) is pleased to announce its 2016 fiscal year results showing substantial year over year revenue growth.
TIMIA’s Portfolio of Investments
Total Revenue in 2016 was $614,491 vs $136,398 in 2015.
TIMIA earns revenue in the form of interest from investments. As of November 30, 2016, its fiscal year end, TIMIA had invested $4.25M into 4 investments and has seen a steady increase in payments from that portfolio since inception, with the fourth quarter of 2016 indicating greater than $800,000 of annualized interest and principal payments (Chart 1 below).
TIMIA expects this amount to increase quarter over quarter as 1) management makes further investments into new investee companies and 2) payments increase from the existing investee companies.
All investee companies are current with their payments.
Payments to Investors
TIMIA paid interest to its debenture holders totalling $257,489 in 2016 vs. $28,027 in 2015. This increase in payments to investors is due to:
- increased capital invested – At November, 30, 2016, the Company had raised $3,541,000 of debentures vs. $1,767,500 of debentures at November 30, 2015, and
- the debentures issued in 2016 were only outstanding for approximately 4 months.
The Company will continue to raise funds, with the most recent fundraise being a 12% 5 year debenture, with warrant coverage available for investments of $50,000 and over. This was announced in February, 2017 with further details being available on our webpage at https://timiacapital.com/investors/seriesd/.
Operational Expenses, other than interest expense, increased to $793,997 in 2016, from $251,160 in 2015. The increase in Operational Expenses was primarily due to the expansion of the team, opening new regions, the building of the TIMIA brand, as well as the creation and scaling of TIMIA’s back office systems. Specifically:
- the opening of an office in Ontario along with the addition of Mr. Andrew Abouchar to the TIMIA Team
- marketing expenditures related to sponsoring conferences targeted at building the TIMIA brand
- the installation of software systems that evaluate and monitor TIMIA’s investments as well as manage its investor base
- increased investor relations expenditures to tell the TIMIA story amongst the broader community of investors
Outlook for 2017
The Company looks forward to continuing to build its portfolio, including adding a new investment in the near term, thereby continuing to increase its revenue.
Mike Walkinshaw, CEO of TIMIA, said “2016 saw continued significant growth in provision of growth capital via new and innovative financing models to growing technology companies in Canada. Entrepreneurs are becoming more aware of the availability of other solutions beyond venture capital, provided by nimble and innovative companies. TIMIA is proud to be a leader in this space.”
For more information please contact:
Chief Executive Officer
TIMIA Capital Corp.
phone: (604) 398-8839
email: [email protected]
About TIMIA Capital Corp.
TIMIA Capital Corporation, is a specialty finance company that provides revenue financing to technology companies in exchange for a royalty stream 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 run by a seasoned investment team with a track record of originating and managing debt and equity investments, as well as monitoring, compliance and workouts.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. The Company disclaims any obligation to update the forward-looking statements except as required by law.