TIMIA Announces Successful Exit from FormHero Financing

~Year to date gains total $1.4M on five exits, after including the $350,000 gain from this facility~

VANCOUVER, BC – October 6, 2020 – TIMIA Capital Corporation (“TIMIA” or the “Company”) (TSX-V:TCA/OTC: TIMCF) announced today that its financing facility for FormHero Inc. (“FormHero”), of Toronto, Ontario has been paid out. Originally announced in October 2018, the FormHero facility has paid TIMIA $1.75 million, in a combination of return of principal and interest payments over the term of its facility. The buyout of this financing is expected to generate a gain of approximately $350,000 which will positively impact the Company’s Q4 2020 consolidated results. After including this gain, the investment in FormHero has generated an internal rate of return of > 30% after inclusion of the buyout gain.

Of the $1.4 million in total gains on a year-to-date basis, approximately $570,000 is attributable to common shareholders, or approximately $0.01 per share, related to these gains alone. The gains attributable to common shareholders is based upon the portions of these loans held directly by TIMIA, portions of these loans held by TIMIA indirectly through its Limited Partnerships (“LP”), and the share of profit earned by TIMIA under the terms of the LP Agreement.

“FormHero is the fifth exit for TIMIA in fiscal 2020 and another indication of the robust marketplace for SaaS companies and their growth potential,” said Mike Walkinshaw, CEO of TIMIA. “The software sector has remained relatively strong this year, despite the economic implications of the COVID-19 pandemic. This has resulted in continued strong financing activity in our target space and TIMIA has seen these gains, an expected part of our model, as a result. The portion of the gains attributable to our common shareholders further support TIMIA’s non-dilutive financing model.”

About FormHero

FormHero is a data collection platform that helps enterprise organizations turn their internal and customer-facing processes into dynamic, user-friendly smart forms. We enable organizations to rapidly digitize legacy and paper-based processes in order to provide the experience their clients desire without the need to overhaul expensive back-office systems. With FormHero, information is validated in real-time to ensure accuracy and then automatically translated into any/all of the required documents or integrations to power the process behind the scenes. Best of all, FormHero never persists any customers information; providing enterprises with the simplicity and scale of a cloud-based solution with the security and regulatory requirements of an on-prem installation. For more information about FormHero, please visit www.formhero.com

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 $1 Million to $10 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 further disbursements upon the completion of certain milestones, increased ability to deploy capital leading to increased assets under management and revenue, 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.