TIMIA Capital Continues to Strengthen Balance Sheet with non-Dilutive Capital and Debenture Payouts - TIMIA Capital
Get fundedGet funded

Investors

TIMIA Capital’s limited partnerships and common shares offer a range of opportunities to invest in recurring revenue technology companies.

TIMIA Capital

789 W Pender St #1530
Vancouver, BC
V6C 1H2
View Map

Back to press

TIMIA Capital Continues to Strengthen Balance Sheet with non-Dilutive Capital and Debenture Payouts

Published on

~Third close of LP II with US$1.3 Million of Subscription Agreements;
$1.8M in Series D debenture payouts with an additional debenture payout of $1.1 million planned for Q2 2021~

VANCOUVER, BC – March 18, 2021 – TIMIA Capital Corporation (“TIMIA” or the “Company”) (TSX-V:TCA/OTCQB:TIMCF) today announced the receipt of an additional US$1.3 million ($1.6 million) in subscriptions towards the second Limited Partnership (“LP II”) previously announced on July 16, 2020. With this third close, LP II has raised US$16.1 million ($21.4 million) exceeding the success of the first limited partnership (“LP I”) offered in 2019 and bringing the total non-dilutive capital raised through 2 Limited Partnerships, after recent successful exits, to more than $47.1 million. In addition to the closing of LP II, the Company has paid out $1.8 million of series D debentures and plans to pay out the remaining balance of series D debentures in the amount of $1.1 million in Q2 of fiscal 2021.

“High yield investors recognize the value of our fintech origination platform and its ability to originate and service high quality investments,” said Mike Walkinshaw, CEO of TIMIA. “As we invest in the platform we are seeing increased efficiencies and we have reached a point where economies of scale of the platform are kicking in. We are now offering investments beyond the traditional Software as a Service market to include a broader basket of Software Enabled Services technology companies generating up to $20 million of annual revenue.”

Limited Partnership II Highlights:

  • Accretive to the Company with no dilution to the shareholders,
  • TIMIA has previously provided $1 Million of the capital in LP II, continuing to earn interest revenue from the current investment portfolio while aligning interests with the limited partners,
  • TIMIA will increase its consolidated cash position to approximately $10 million,
  • TIMIA, through a wholly-owned subsidiary, receives a 1.5% servicing fee to manage LP II as its general partner,
  • TIMIA also receives a performance fee based upon the profit of LP II for the life of the fund, subject to investors achieving their preferred return first,
  • LP II is denominated in US dollars, reflecting the expected allocation of the majority of LP proceeds into US based companies, and
  • LP II can hold follow-on closes over the next 4 months, increasing the non-dilutive capital and assets under management.

TIMIA’S common shareholders are expected to benefit from the non-dilutive capital via the generation of fee income and profit share from the Limited Partnerships, without having to issue dilutive common shares.

TIMIA invites growing technology 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 technology 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:
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 the planned additional debenture payout of $1.1 million planned for Q2 2021, LP II holding follow-on closes over the next 6 months resulting in increasing the non-dilutive capital and assets under management, expected benefits from the non-dilutive capital via the generation of fee income and profit share from the Limited Partnerships and the future growth of the Company and its investments. 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.