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This content is a press release from our partner Globe Newswire. The AP newsroom and editorial departments were not involved in its creation.

TIMIA Announces Significant Transaction with $10.5 Million Limited Partnership

March 11, 2019

VANCOUVER, British Columbia, March 11, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- TIMIA Capital Corporation (“TIMIA” or the “Company”) (TSX-V: TCA) (OTC: TIMCF) today announced the formation and structure of $10.5 million in TIMIA’s first Limited Partnership (“LP”). External investors will invest $7.6 million in the LP with TIMIA retaining a $2.4 million interest. Additional subscription agreements totaling $500,000 have been received and are expected to close shortly for a total LP value of $10.5 million. The LP, TIMIA Capital 1 Limited Partnership, will be governed under the terms of a limited partnership agreement with TIMIA Capital GP Inc., a wholly owned subsidiary of TIMIA, acting as the LP’s General Partner (“GP”).

Existing financing agreements with TIMIA’s portfolio of SaaS companies, representing approximately $8.2 million in value will be transferred into the LP with related monthly payments being distributed, after deduction of fund expenses, to LP unit holders, including TIMIA, on a monthly basis. The remaining $2.3 million will be invested in SaaS companies through TIMIA’s fintech platform and proprietary investment algorithms. In exchange for transferring the loan facility future cash flows into the LP, TIMIA will receive $5.8 million in cash on its balance sheet, and a $2.4 million interest in the LP.

Transaction Highlights Include:

-- Accretive to the Company with no dilution to the shareholders, TIMIA Capital will retain at least a 20% interest in the LP, thus still participating in a proportionate share of the revenue from the current investment portfolio while increasing its consolidated cash position to approximately $8.7 million -- Assets under management go from approximately $15 million to approximately $23 million, representing roughly a 55% increase, -- TIMIA will receive a 1.5% servicing fee to manage the LP as its GP, -- TIMIA will receive a performance fee based upon the profit of the LP for the life of the fund, subject to investors achieving their preferred return first -- TIMIA will have approximately $8.7 million of new capital to invest in SaaS companies in North America

“This transaction is a significant milestone for the Company and its shareholders and reflects the confidence of investors in our strategy and ability to source quality investments,” said Mike Walkinshaw, CEO of TIMIA. “Prior to the LP, TIMIA has raised approximately $10 million in total capital and have been able to execute $17 million of transactions. We’ve leveraged our proprietary lending algorithms and related software to efficiently generate deal flow and deliver stronger than industry average returns.”

“According to data collected from pitchbook.com, the market size for loans to North American Software companies generating approximately $1 million to $10 million in revenue represents $14 billion and is growing at over at 25% per year. With this in mind, we felt that this was the right time to raise capital and expand our fintech platform. We’re moving quickly into new geographies and, as a result, expect this capital will be quickly deployed in companies where our capital can speed growth.”

TIMIA is continuously seeking new and exciting investments in the software as a service or SaaS industry. Under TIMIA’s revenue-based financing model, TIMIA advances capital to a SaaS business with a recurring revenue stream that allows the portfolio company to make monthly payments to TIMIA that are a combination of principal and interest with a repayment schedule sculpted to the portfolio company’s revenue streams. The amounts advanced are secured and may be repaid early. The Company expects to make further investments in the coming months, in the pursuit of its business model, which is to earn a combination of monthly payments and periodic gains on investments.

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 the closing of the LP transaction, TIMIA’s ownership of LP units, future administration fee payments and carry on LP funds per year, further investments in SaaS companies with the remaining $2M and expectations regarding moving into new geographies, the quick deployment of capital and 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.