~Fintech platform has originated $12.4 million of non-dilutive investments in the first half of fiscal 2021 bringing total assets under management to over $40 million~
VANCOUVER, BC – June 7, 2021 – TIMIA Capital Corporation (“TIMIA” or the “Company”) (TSX-V:TCA/OTCQB:TIMCF) today announces that it has originated four investment facilities for four growing software companies for an aggregate value of approximately $7.6 million.
The first investment facility of US$4.0 million (C$4.88 million) has been extended to a US-based software-as-a-service (SaaS) company and existing client of TIMIA’s wanting to increase their original facility. The SaaS company has continued to grow, posting strong operating results, and has successfully met TIMIA performance milestones triggering an increase to the amount of accessible capital. The revised investment facility included a new disbursement of US$1.0 million (C$1.22 million) which has been advanced.
Two of the other three investment facilities are for US$1.5 million (C$1.83 million) each, while the third investment facility is US$2.5 million (C$3.05 million) all made to US-based SaaS companies. Two of these facilities include initial disbursements of US$500,000 (C$610,000), and the other includes an initial disbursement of US$1 million (C$1.22 million), all of which have been advanced.
The four investment facilities announced today include additional disbursements that may be made upon certain milestones being met over the term of the agreement. The source of non-dilutive capital for the four investment facilities is primarily from the Company’s Limited Partnership II (“LP II”).
“We are putting $7.6 million to work with four high-quality successful SaaS companies through four revenue-based loan facilities,” said Mike Walkinshaw, CEO of TIMIA. “TIMIA continues to see strength in the software-as-a-service sector and other verticals within the technology sector with many revenue generating technology companies requiring growth capital. Our automated loan origination platform can identify successful entrepreneurs seeking non-dilutive growth capital, while at the same time lowering transaction costs and increasing credit quality. We continue to see growth in our sales pipeline and our origination team is working diligently to close additional investments to increase our total assets under management throughout the rest of the year. ”
TIMIA has originated six investment facilities totalling US$10.0 million (C$12.4 million) in the first half of fiscal 2021. Two investments were announced in January 2021 and included facilities in the amount of US$2.5 million and US$1.25 million respectively. As with most of TIMIA investment facilities, additional disbursements may be made upon certain milestones being met over the term of the agreement.
In addition, the Company is pleased to report pursuant to the Normal Course Issuer Bid announced February 24, 2021 for the purchase of up to 3.3 million common shares, it has purchased for cancellation 443,500 commons shares through the facilities of the TSX Venture Exchange and alternative trading systems at a weighted average price of $0.24 for a total consideration of $106,840.
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.
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:
Vice President, Capital Markets & Communications
Mike Walkinshaw, CEO
TIMIA Capital Corporation
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.
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, that the Company’s automated loan origination platform can identify successful entrepreneurs while at the same time lowering transaction costs and increasing credit quality, the potential to close additional investments to increase total assets under management throughout the rest of the year and the future growth of the Company. 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.