~LP III is TIMIA's first limited partnership
to be available through FundSERV~
VANCOUVER, BC, April 8,
2022 /CNW/ - TIMIA Capital Corporation ("TIMIA" or
the "Company") (TSXV: TCA) (OTCQB: TIMCF), a leading innovator
of technology in private credit, today announced it has received
approximately $6.3 million
(US$5 million) in subscription
agreements towards its third Limited Partnership ("LP
III").
LP III builds on the successful closing of the first limited
partnership ("LP I") in 2019 which raised $18.4 million and the second limited partnership
("LP II") which raised $21.6 million.
TIMIA will have approximately $6.3
million of new capital to invest in software-as-a-service
("SaaS") companies in North America. LP III is denominated in
US dollars, reflecting the intention to invest a majority of
proceeds into US based recurring revenue technology companies
with loan terms generally varying from 2 to 6 years.
"The world of private credit as an alternative asset class has
largely been reserved for institutional investors," said
Mike Walkinshaw, CEO of TIMIA. "With
our third limited partnership we have made investments in private
credit available to accredited investors through approved dealers
on FundSERV Inc. and directly through Belco Private Capital Inc. We
have been very successful at deploying the capital of our previous
two limited partnerships. The LP structure has allowed us to
materially grow TIMIA's technology lending division through
investments in growing SaaS companies. We are able to provide
growth capital to tech entrepreneurs while offering the opportunity
for superior returns to accredited investors. Our technology
lending experienced considerable growth in 2021 and we look to
continue that trajectory throughout 2022."
LP III Transaction
Highlights:
- TIMIA Capital III Preferred Return Fund Trust is available
directly through Belco Private Capital Inc. the exempt market
dealer of the Trust, as well as IIROC and other approved dealers on
FundSERV,
- Denominated in US dollars, the primary business of the Trust is
to invest in units of LP III,
- Accretive to the Company with no dilution to the
shareholders,
- TIMIA will receive a 1.5% servicing fee to manage LP III as its
general partner,
- TIMIA will receive a performance fee based upon the profit of
LP III for the life of the fund, subject to investors achieving
their preferred return first, and
- Open to follow-on closes on a continuous basis to a maximum of
$50 million.
TIMIA is continuously seeking new and exciting investment
opportunities in the software as a service or SaaS industry. Under
TIMIA's revenue-based financing model, TIMIA advances capital to
SaaS businesses with recurring revenue streams allowing the
portfolio company to make monthly payments, which are a combination
of principal and interest, to TIMIA with a repayment schedule
sculpted to the portfolio company's revenue streams. The amounts
advanced are secured and may be repaid early. TIMIA 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.
FundSERV
TIMIA Capital III Preferred Return Fund Mutual Fund
Trust
FundSERV Codes
Series
|
Purpose
|
Code
|
Preferred
Return
|
Minimum
|
Class 1 Series
A
|
Institutional
Accounts
|
BEL 1310
|
10%
|
$250,000 USD
|
Class 1 Series
C
|
Commission
Accounts
|
BEL 1312
|
8%
|
$25,000
USD
|
Class 1 Series
F
|
Fee Accounts
|
BEL 1314
|
9%
|
$25,000 USD
|
TIMIA has developed a proprietary, scalable, technology-driven
fintech platform to originate investments and earn higher
risk-adjusted returns. The Company is driving growth by identifying
revenue producing SaaS growth companies for investment by TIMIA's
LP II through non-dilutive investment facilities.
The Company invites organizations seeking innovative and
non-dilutive financing to register through TIMIA's fintech
platform. Under revenue-based and asset-based origination models,
TIMIA matches non-dilutive capital to SaaS 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
The Company utilizes a
proprietary loan origination platform to originate, underwrite and
service private-market, high-yield loan opportunities through two
operating divisions: TIMIA Capital which offers revenue-based
investment to fast growing, business-to-business
Software-as-a-Service (or SaaS) businesses in North America, and Pivot Financial which
specializes in asset-based private credit targeting mid-market
borrowers in Canada. The
Corporation deploys funds on behalf of limited partnerships,
institutions, retail investors, high net worth individuals, its
management team and shareholders. For more information about TIMIA
and SaaS lending, please visit www.timiacapital.com. For more
information about specialized private credit and Pivot please
visit: www.pivotfinancial.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 expected
closing date and size thereof, expectations as to future closings
and further increases in investable capital, the belief as to the
future value creation for shareholders, the terms of LP III
including expected service and performance fees, the expected
benefits to shareholders of raising non-dilutive capital 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.
SOURCE TIMIA Capital Corp.