VANCOUVER, BC – February 26, 2018 TIMIA Capital Corporation (TSX-V:TCA) (“TIMIA” or the “Company”) today provided an operational update for the quarter ended November 30, 2017.
Portfolio
As previously disclosed, TIMIA entered into new revenue finance agreements with Realty Butler, and Rise People (“Rise”) as well as follow-on investments in Beanworks.
TIMIA committed $1.5 million to Rise and $1.3 million to Realty Butler in November 2017 with $650K as a follow-on investment in Beanworks. As at November 30, 2017, the Company’s cumulative funding commitments[1] are $9.6 million, an 85% increase over the same period last year. Cumulative funding disbursements[2] made as at November 30, 2017 are $7.1 million, an increase of 67% over the $4.2 million disbursed in the same period last year.
Payments Received
TIMIA receives monthly blended payments from its investee companies, comprising both interest and principal repayment. These blended payments totalled $250,000 during the quarter ended November 30, 2017, representing a 20% increase over the same period last year. These payments do not include adjustments such as buyout premiums, and transaction and due diligence fees contemplated in interest income. Q4 2017 payments received, on a sequential basis, reflect the successful early exit from Lambda Solutions and related reduction in payments.
The growth of these payments over time reflect our unique and active financing model, targeting private recurring revenue software companies, and tying our repayment to the revenue growth of those companies.
Cash
Based on the sale of Lambda Solutions, the Company had available cash resources of $714,000 at the end of the quarter. Subsequent to quarter end, TIMIA increased cash resources by over $4 million by exiting two portfolio investments. The Company looks forward to putting capital to work in new and existing deals over the next few quarters.
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. For more information about TIMIA Capital Corporation, please visit www.timiacapital.com
For more information, please contact:
Darren Seed
Vice President, Capital Markets & Communications
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 Statements
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 future funding commitments of $9.6 million which are subject to meeting certain milestones and due diligence. 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, the regulated nature of the industry in which the Company operates, intense competition in all aspects of business, reliance on limited management resources, general economic risks, new laws and regulations, risk of litigation, and volatility of the price of the Company’s common shares. 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.
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[1] Funding commitments are total contractual commitments to fund investee companies, inclusive of actual disbursements made to date and future commitments subject to meeting certain milestones and due diligence.
[2] Funding disbursements are actual funds invested to date.