TIMIA Capital Corporation (“TIMIA” or the “Company”) (TSXV: TCA) (OTC: TIMCF) announced today that its financing facility announced in October 2019, to a Connecticut-based software company, has been paid out. TIMIA advanced US$1.4 million under the financing facility and has received TIMIA US$1.82 million over the past 12 months, in a combination of return of principal, interest, and buyout payments. The buyout of this financing is expected to generate a gain of approximately $255,000 during the Company’s fiscal Q4 of which approximately $60,000 will flow to common shareholders. The investment in this impressive software company generated an internal rate of return of almost 32% after inclusion of the buyout gain.
This most recent exit, by a company that wishes to remain anonymous due to competitive considerations, brings TIMIA’s year-to-date total gains to $1.6 million in 2020 with approximately $630,000 is attributable to common shareholders, or approximately $0.01 per share, related to these gains alone. The gains attributable to common shareholders are based upon the portions of loans held directly by TIMIA versus the portions of loans held indirectly through TIMIA’s Limited Partnerships (“LP”), and the share of profit earned by TIMIA under the terms of the LP Agreement.
“Today we announced our sixth exit for TIMIA in fiscal 2020, which is a record number of exits in a single fiscal year for our company,” said Mike Walkinshaw, CEO of TIMIA. “Our strategy of using a fintech based lending model continues to drive our success as our investments in entrepreneurs continue to utilize our non-dilutive financing facilities. Exits from our financial lending facilities are indicators of growth in the software sector. We look forward to additional financing activity in our target space and look to make more investments in SaaS companies through our revenue financing model before year end.”