FOR IMMEDIATE RELEASE: January 31st, 2018
~TIMIA utilizing Ethereum to expand on existing successful specialty finance business~
VANCOUVER, BC, January 31, 2018– TIMIA Capital Corporation (TSX-V:TCA) (“TIMIA” or the “Company”) today announced the establishment of a collaboration with Finhaven Technology Inc., (“Finhaven”), a blockchain powered investment banking platform, to create a cryptocurrency-based investment platform (“CBIP”) for TIMIA.
Utilizing the Ethereum blockchain, the CBIP is intended to be part of a new medium of exchange between investors and TIMIA and between TIMIA and its portfolio of investments. The collaboration calls for the raising of non-dilutive capital of up to $5 million through a CBIP to be developed by Finhaven. The capital is then invested using TIMIA’s established revenue finance model while taking advantage of a tokenized system of tracking status and returns on investments.
Finhaven and Timia believe that the future of business finance will incorporate cryptocurrency into each element in the financing cycle – from supply of capital by investors to deployment of capital by lenders to return on and of capital by borrowers. This collaboration represents the first step in developing an end-to-end cryptocurrency enabled lending platform by initially creating a tokenized system bridging the traditional provision of capital to TIMIA’s established finance model.
“This collaboration represents TIMIA’s first step in implementing blockchain technology throughout its operations and investments,” said Mike Walkinshaw, CEO of TIMIA. “We have a strong underlying business financing software as a service (or SaaS) companies, while this new CBIP will help us expand our global reach for investors and deal flow. TIMIA’s investment model and team is well suited to early adoption of this technology, as it is focused on lending to the technology space utilizing advanced data analytics. We look forward to leveraging blockchain’s power, efficiency, and security.”
“Finhaven is proud to partner with TIMIA, who share our vision of the power of blockchain to increase access to capital to businesses that are vital engines of growth in their communities,” said Boris Mann, CEO of Finhaven. “Working with regulators to combine compliant investments with smart contract execution to facilitate the regulated exchange of tokenized securities is the future of finance.” Finhaven is currently working with securities regulators to acquire the necessary regulatory approvals.
This collaboration is important to TIMIA because CBIP is expected to provide significant benefits for TIMIA including:
- Further expansion of TIMIA’s investor base of non-dilutive capital,
- Should allow TIMIA’s monthly calculation, collection and transfer of loan payments to become more efficient and cost effective through the use of cryptocurrency wallets,
- Should improve TIMIA’s collection of routine performance data from its portfolio investments, generating earlier recognition of high-risk situations,
- TIMIA’s CBIP will provide income and liquidity to crypto-currency markets acting primarily as a store of value, and
- TIMIA can utilize the efficiency of the blockchain system to create new financing products that better match the needs of its customers.
Establishment of the CPIB remains subject to finalizing definitive agreements between TIMIA and Finhaven which the parties are targeting to complete in calendar Q2 2018. Concurrent with the establishment of the CPIB, the first closing of a financing is expected to raise one-half of the total $5M financing. The proceeds will be advanced to TIMIA as a non-dilutive contribution pursuant to an Ethereum-based smart contract that will govern payments by TIMIA to the portfolio investments..
Monthly cash-flows from TIMIA’s portfolio of investments will be passed back through the CBIP as Canadian dollars and converted to Bitcoin for distribution to the Token-holders.
Finhaven is a blockchain powered investment banking platform. Finhaven combines legal structures with smart contract execution to facilitate the tokenization of securities in compliance with applicable securities laws. To help businesses in emerging markets access capital, Finhaven makes it easy for institutions and family offices to issue, syndicate, manage and settle loans to small & medium enterprises. For more information about Finhaven, please visit www.finhaven.com
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:
Vice President, Capital Markets & Communications
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.
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 including statements regarding the intended implementation of, and the benefits arising from the implementation of the CPIB. Such statements are: (a) dependent on TIMIA and Finhaven successfully negotiating and executing definitive agreements regarding the collaboration described in this news release and (b) are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. It is not yet clear what will be required to make the collaboration successful. 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.