TIMIA Capital Corporation (“TIMIA” or the “Company”) (TSXV: TCA)/(OTC: TIMCF) announced today that its previously announced financing for Wagepoint Inc. (“Wagepoint”), of Waterloo, Ontario has been paid out. Since the initial financing, originally completed in December 2017, Wagepoint has paid TIMIA $2,700,000 in a combination of return of principal, interest and early redemption payments. The buyout of this financing is expected to generate a gain of approximately $500,000, which will positively impact the Company’s Q3 2020 consolidated results.
“Wagepoint is another success story for TIMIA’s non-dilutive financing model allowing entrepreneurs to grow their companies without impacting their capital structure,” said Mike Walkinshaw, CEO of TIMIA. “The non-dilutive funds provided by TIMIA helped the maker of payroll automation software grow significantly over the past two years. Furthermore, TIMIA’s successful exit reflects the strength of the recurring revenue software businesses in our portfolio and their continued success during these uncertain times due to the impact of the COVID-19 pandemic.”
On December 18, 2017, the Company announced a $2 million financing facility for Wagepoint including an initial disbursement of $750,000. An additional $750,000 was disbursed in August 2018 and all disbursements have now been re-paid. The financing facility was held by TIMIA and the Company’s first limited partnership (“LP1”). The proceeds realized from the exit will be distributed to TIMIA and the holders of LP1 interests according to each holder’s proportional entitlement.
This $500,000 gain is an example of the periodic gains that TIMIA’s fintech platform has produced, having a meaningful impact on the Company’s EPS. Over its five year history, TIMIA has exited 9 revenue finance investments, out of the total of 28 investments it has made, generating total gains of over $2.4M in its consolidated income statement. Furthermore, from the inception of the revenue financing model to date, TIMIA has never realized a loss of capital on any of its investments.
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.