TIMIA Increases Investment Capacity with $7.5 Million Credit Facility While Reducing Cost of Capital
December 2, 2019
Source: Business Insider
TIMIA Capital Corporation ("TIMIA" or the "Company") (TSX-V:TCA/OTC: TIMCF) announced that it has entered into a $7.5 million credit facility with Turnham Green Investments Inc. of Vancouver, BC. The one-year term includes an additional 3 month extension and supports TIMIA's future investments into growing SaaS companies in North America with the expectation that 50% of funding for such new investments will be funded from the credit facility ("advance rate") and the remaining 50% will be funded from TIMIA's balance sheet. This new facility and its advance rate, combined with capital from TIMIA's own balance sheet, provides for new capacity of up to $15 million in financing for growing software companies.
"This credit facility provides the non-dilutive flexibility to cost effectively build our investment portfolio," said Mike Walkinshaw, CEO of TIMIA. "With the addition of this lower-cost capital, we can accumulate and warehouse additional investments and look for other non-dilutive opportunities, such as Limited Partnerships, to continuously maximize the credit facility."
TIMIA has developed a proprietary, scalable, technology-driven fintech platform targeting higher risk-adjusted returns on its finance solutions, creating value for shareholders, and leveraging its non-dilutive capital structure.
Through its fintech platform, TIMIA continuously seeks 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 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.
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