~Year to date gains for TIMIA reach more than $1.6M on six exits, including this $255,000 gain~
VANCOUVER, BC – October 27, 2020 – TIMIA Capital Corporation (“TIMIA” or the “Company”) (TSX-V:TCA/OTC: TIMCF) announced today that its financing facility announced in October 2019, to a Connecticut-based software company, has been paid out. TIMIA advanced US$1.4 million under the financing facility and has received TIMIA US$1.82 million over the past 12 months, in a combination of return of principal, interest, and buyout payments. The buyout of this financing is expected to generate a gain of approximately $255,000 during the Company’s fiscal Q4 of which approximately $60,000 will flow to common shareholders. The investment in this impressive software company generated an internal rate of return of almost 32% after inclusion of the buyout gain.
This most recent exit, by a company that wishes to remain anonymous due to competitive considerations, brings TIMIA’s year-to-date total gains to $1.6 million in 2020 with approximately $630,000 is attributable to common shareholders, or approximately $0.01 per share, related to these gains alone. The gains attributable to common shareholders are based upon the portions of loans held directly by TIMIA versus the portions of loans held indirectly through TIMIA’s Limited Partnerships (“LP”), and the share of profit earned by TIMIA under the terms of the LP Agreement.
“Today we announced our sixth exit for TIMIA in fiscal 2020, which is a record number of exits in a single fiscal year for our company,” said Mike Walkinshaw, CEO of TIMIA. “Our strategy of using a fintech based lending model continues to drive our success as our investments in entrepreneurs continue to utilize our non-dilutive financing facilities. Exits from our financial lending facilities are indicators of growth in the software sector. We look forward to additional financing activity in our target space and look to make more investments in SaaS companies through our revenue financing model before year end.”
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 $2 Million to $20 Million in Annual Recurring Revenue. 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 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.