TIMIA Capital Announces Adoption of Participation Financing Model and Closing of $600,000 in Non-Dilutive Capital

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TIMIA Capital Announces Adoption of Participation Financing Model and Closing of $600,000 in Non-Dilutive Capital



Vancouver, British Columbia (FSCwire) - TIMIA Capital Corporation (TSX-V:TCA) (“TIMIA” or the “Company”) today announced the expansion of its financing strategy to include a new participation financing model (“PFM”) and the first close of $600,000 in non-dilutive financing (the “Closing”) under the new PFM. This new model allows qualified investors to directly participate in TIMIA’s portfolio of investments by investing alongside TIMIA, thereby significantly increasing the amount of non-dilutive capital available to the Company. PFM investors will receive a specified percentage of future cash flows from portfolio companies. TIMIA earns a share of the PFM investor’s profit as well as retaining control, title and security position over the underlying portfolio investments.

 

The new financing model allows TIMIA to expand its pipeline of investments by leveraging the scalability of the PFM, while PFM investors benefit from access to TIMIA’s sophisticated and active investment management, as well as advanced data analytics tools, for the software as a service (“SaaS”) industry.

 

“This financing structure was developed in partnership with a number of investors who are attracted by TIMIA’s proven performance, attractive business model and exciting SaaS portfolio,” said Mike Walkinshaw, CEO of TIMIA. “PFM investors will participate directly in our overall portfolio, sharing risk and reward, and TIMIA shareholders will benefit from our ability to re-invest our existing capital as a result of the additional non-dilutive capital under the PFM.”

 

TIMIA has made eight recurring-revenue software company investments since mid-2015 with two early exits providing returns above the portfolio average as well as a growing stream of monthly cash payments as these companies grow and succeed.  The Company has earned an annualized return of 23.5% on its portfolio since inception in 2015.

 

TIMIA believes that this model will enable expansion to meet the demand from high-growth software companies for TIMIA’s owner-friendly expansion capital, while reducing overall risk to TIMIA shareholders and debenture holders.

 

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:

Mike Walkinshaw

Chief Executive Officer

TIMIA Capital Corporation

(604) 398-8839

[email protected]

 

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.



To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/timiacapital01182018.pdf

Source: TIMIA Capital Corp. (TSX Venture:TCA)

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