~ Fintech platform identifies two SaaS companies as candidates
for non-dilutive investments from Limited Partnership II ~
VANCOUVER, BC – January 29, 2021 – TIMIA Capital Corporation (“TIMIA” or the “Company”) (TSX-V:TCA/OTCQB:TIMCF) today announces that it has originated two investment facilities for growing software companies for an aggregate value of approximately $4.8 million.
One investment facility is in the amount of US$2.5 million (C$3.2 million) made to a US-based software-as-a-service (SaaS) company and includes an initial disbursement of US$1.1 million (C$1.4 million), which has been advanced. The second investment facility of US$1.25 million (C$1.6 million) has been extended to a US-based software company which is an existing client of TIMIA’s that wanted to modify their existing facility. The initial disbursement of US$750,000 (C$960,000) has been advanced and is in addition to retaining their existing fully disbursed facility of US$750,000. In both cases, additional disbursements will be made upon certain milestones being met over the term of the agreement. The source of non-dilutive capital for the two investment facilities is the Company’s Limited Partnership II (“LP II”).
“TIMIA creates value for shareholders by originating and servicing high quality loans for yield investors, thereby generating fees and keeping a share of the profit,” said Mike Walkinshaw, CEO of TIMIA. “Our automated loan origination platform turns an old business model on its head by creating scalability while at the same time lowering transaction costs and increasing credit quality. This value is demonstrated in our revenue growth in Q3 2020 of more than 50% on a year-over-year basis, despite a global pandemic. We look forward to continued growth into 2021.”
TIMIA has developed a proprietary, scalable, technology-driven fintech platform to originate investments and earn higher risk-adjusted returns. The Company is driving growth by identifying revenue producing SaaS growth companies for investment by TIMIA’s LP II through non-dilutive investment facilities.
TIMIA invites growing SaaS companies, seeking innovative and non-dilutive financing, to register through the TIMIA fintech platform. Under a revenue-based origination model, TIMIA matches non-dilutive capital to SaaS businesses with recurring revenue streams, allowing the company to make monthly payments, made up of a combination of principal and interest, with a repayment schedule sculpted to its revenue streams. The amounts advanced are secured and may be repaid early.
The Company also announces that its Board of Directors has approved the grant of 490,000 stock options to staff and officers which are exercisable into common shares of TIMIA at a price of $0.19 per common share in accordance with TSX Policy 4.4, subject to the rules of the TSX Venture Exchange and the Corporation’s Stock Option Plan. Of the 490,000 options, Officers received 200,000 with the staff receiving the remainder. The options have a term of five years and will expire on January 18th, 2026.
About TIMIA Capital Corporation
TIMIA Capital Corporation has developed a proprietary loan origination platform that services private market, high-yield loan opportunities, thereby earning recurring fees and a share of the profit. While focusing on the fast growing, global, business-to-business Software-as-a-Service (or SaaS) segment, TIMIA’s automated loan origination system is applicable to multiple technology sectors, it creates scalable and profitable growth for TIMIA’s stakeholders. 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
[email protected]
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 making further disbursements upon the completion of certain milestones, future value creation for shareholders, the growth of the company’s investment portfolio 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 Company and its investee companies are able to meet their respective future objectives and priorities, assumptions concerning general economic growth and the absence of unforeseen changes in the legislative and regulatory framework for the Company. 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 Company having insufficient financial resources to achieve its objectives; 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; general economic risks; new laws and regulations and risk of litigation. 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.