~Upon second close, total non-dilutive capital raised through 2 Limited Partnerships, after recent successful exits, will grow to more than $36 million~

VANCOUVER, BC – November 5, 2020 – TIMIA Capital Corporation (“TIMIA” or the “Company”) (TSX-V:TCA/OTCQB:TIMCF) today announced that it has received approximately $8 million in subscription agreements towards its second Limited Partnership (“LP II”) previously announced on July 16, 2020. Upon closing, LP II will have raised $18 million matching the success of TIMIA’S first limited partnership (“LP I”) offered in 2019.

Upon completion of customary closing conditions, LP II will have approximately $18 million of capital to invest in software-as-a-service (“SaaS”) companies in North America. Closing of the additional $8 million is expected to occur on or about November 13, 2020. Management expects to have further closings in LP II, which will further increase investable capital over the next 12 months.

“Our ability to attract additional investment in our limited partnerships is based primarily on our success at attracting exciting, revenue-producing growth companies through our fintech platform,” said Mike Walkinshaw, CEO of TIMIA. “Our larger investment facilities and long investment horizon allows our team to seek out a broader range of companies generating up to $20 million of annual revenue. After having delivered strong returns to our LP I investors, we were very happy to see > 90% of our LP I investors commit to investing in LP II.”

Limited Partnership II Highlights:
  • Accretive to the Company with no dilution to the shareholders,
  • TIMIA to provide $1 Million of the capital in LP II, continuing to earn interest revenue from the current investment portfolio while aligning interests with the limited partners,
  • TIMIA will increase its consolidated cash position to approximately $10 million,
  • TIMIA, through a wholly-owned subsidiary, will receive a 1.5% servicing fee to manage LP II as its general partner,
  • TIMIA will also receive a performance fee based upon the profit of LP II for the life of the fund, subject to investors achieving their preferred return first,
  • LP II is denominated in US dollars, reflecting the expected allocation of the majority of LP proceeds into US based companies, and
  • LP II can hold follow-on closes over the next 8 months, increasing the non-dilutive capital and assets under management.

TIMIA’S common shareholders may benefit from the non-dilutive capital via the expected generation of fee income and profit share from the Limited Partnerships, without having to issue dilutive common shares.

TIMIA is continuously seeking new and exciting investments in the software as a service or SaaS industry. Under TIMIA’s revenue-based financing model, TIMIA advances capital to SaaS businesses with recurring revenue streams allowing the portfolio company to make monthly payments, which are a combination of principal and interest, to TIMIA with a repayment schedule sculpted to the portfolio company’s revenue streams. The amounts advanced are secured and may be repaid early. TIMIA expects to make further investments in the coming months, in the pursuit of its business model, which is to earn a combination of monthly payments and periodic gains on investments.

About TIMIA Capital Corporation

TIMIA Capital Corporation is a specialty finance company that provides growth capital to technology companies in exchange for payments based on monthly revenue. This alternative financing option complements both debt and equity financing, while allowing entrepreneurs and existing stakeholders to retain ownership and control of their business. TIMIA’s singular focus is the fast growing, global, business-to-business Software-as-a-Service (or SaaS) segment. We align ourselves with entrepreneurial management teams growing their sales from $2 Million to $20 Million in Annual Recurring Revenue. For more information about TIMIA Capital Corporation, please visit www.timiacapital.com

For more information, please contact:

Darren Seed
Vice President, Capital Markets & Communications
Mike Walkinshaw, CEO
TIMIA Capital Corporation
(604) 398-8839
IR@timiacapital.com

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.

Forward-Looking Information

Certain information and statements in this news release contain and constitute forward-looking information or forward-looking statements as defined under applicable securities laws (collectively, “forward-looking statements”). Forward-looking statements normally contain words like ‘believe’, ‘expect’, ‘anticipate’, ‘plan’, ‘intend’, ‘continue’, ‘estimate’, ‘may’, ‘will’, ‘should’, ‘ongoing’ and similar expressions, and within this news release include any statements (express or implied) respecting the expected closing date and size thereof, expectations as to future closings and further increases in investable capital over the next 12 months, the belief as to the future value creation for shareholders, the terms of LP II including expected service and performance fees, the expected benefits to shareholders of raising non-dilutive capital and expectations regarding making further investments in the coming months. Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions and other factors that management currently believes are relevant, reasonable and appropriate in the circumstances, including, without limitation, the following assumptions: that the closing conditions for LP II will be satisfied, the Company and its investee companies are able to meet their respective future objectives and priorities, assumptions concerning general economic growth, the Company being able to obtain financing on acceptable terms, the Company’s ability to attract and retain skilled staff, the absence of unforeseen changes in the legislative and regulatory framework for the Company, the COVID-19 pandemic not having a material impact on the Company’s operations, the products and technology offered by the Company’s competitors and the Company’s ability to protect intellectual proprietary rights . Although management believes that the forward-looking statements are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to TIMIA’s business. Material risks and uncertainties applicable to the forward-looking statements set out herein include, but are not limited to, the risk that the closing conditions are not satisfied or the parties are otherwise unable to complete the closing of LP II, the risk of worldwide pandemics, such as the recent outbreak of the novel coronavirus COVID-19, may adversely impact multiple aspects of the Company’s business; the Company having insufficient financial resources to achieve its objectives; uncertainty as to the Company’s ability to raise additional funding; availability of further investments that are appropriate for the Company on terms that it finds acceptable or at all; successful completion of exits from investments on terms that constitute a gain when no such exits are currently anticipated; intense competition in all aspects of business; reliance on limited management resources; the Company’s dependence upon certain key personnel and their loss could adversely affect the Company’s ability to achieve its business objectives; general economic risks; new laws and regulations, risk of litigation, the Company may not achieve its publicly announced business objectives according to schedule, or at all; the Company’s success depending upon its ability to protect its intellectual property and its proprietary technology; the price of the Company’s shares may be subject to fluctuation in the future based on market conditions; the Company’s success depends on its ability to effectively manage growth; and significant disruptions of information technology systems or security breaches could adversely affect the Company’s business. Although TIMIA has attempted to identify factors that may cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, predicted, estimated or intended. Also, many of the factors are beyond the control of TIMIA. Accordingly, readers should not place undue reliance on forward-looking statements. TIMIA undertakes no obligation to reissue or update any forward-looking statements as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements contained in this news release are qualified by this cautionary statement.