TIMIA Capital Corp.
TSX VENTURE : TCA

TIMIA Capital Corp.

May 02, 2016 07:00 ET

TIMIA Capital Announces First Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 2, 2016) - TIMIA Capital Corp. ("TIMIA" or the "Company") (TSX VENTURE:TCA) announced financial results for the fiscal quarter ended February 29, 2016.

During the quarter ended February 29, 2016, the Company had revenues of $105,542 compared to $Nil in the same period in 2015. Revenues in the first quarter of 2016 were comprised of royalty and interest income generated under the Company's new business model, as well as advisory income. The increased revenues were offset by higher expenses of $192,487 (2015 - $24,218), resulting in a net loss of $86,945 compared to a net loss of $23,562 for the same period last year.

The Company's financial results are primarily due to the commencement of its Revenue Based Financing ("RBF") business.

Revenue Based Finance

The Company commenced its Revenue Based Financing ("RBF") business during the year ended November 30, 2015 and has begun to receive its monthly royalty payments from investee companies. At February 29, 2016, the Company had made 3 RBF investments, totaling $1,900,000, with a 4th investment of an additional $750,000, being announced on April 4, 2016.

The royalty income and related transaction fees from these investments have contributed in a positive way to the Company's financial performance. The Company had $105,542 in revenue in this quarter compared to $Nil in the same period last year. This increase in revenue was primarily from royalty and interest income generated under the Company's new RBF business.

The Company's RBF investments are made into high quality growing software companies and investee companies are all current in their payments as of February 29th, 2016. TIMIA has security provisions contained within its RBF Agreements that are similar to other debt facilities, including rights allowing for declaration of default if routine monthly payments are missed.

Cash Position

As at February 29, 2016, the Company's cash balance was $1,062,724 and working capital was $610,735. Included in the working capital amount is $917,246 of funds received from the sale of the dPoint Technologies investment. Further, $283,500 of convertible debentures were issued during the quarter.

Divestiture of Investment

Subsequent to the quarter end, on March 31, 2016, the Company's investment in Espresso Capital Limited Partnership was redeemed at the Company's option in accordance with the underlying agreement. The full amount of the investment, $485,000 was received as well as interest owing to the date of the redemption.

Outlook for the 2016 Year

The Company will continue to pursue prudent growth in its RBF portfolio while also carefully monitoring its existing RBF investments. Management will be monitoring each investment in the portfolio in terms of its growth against plan and other key financial metrics.

The Company will also seek to opportunistically monetize its equity investment portfolio.

The Company currently has no exposure to foreign currency denominated investments and should such investments be made, the Company would seek to reduce or eliminate currency risk via structuring or hedging.

"We are very excited about growing our RBF investment business in the first quarter of 2016 and we look forward to continuing this growth in the remainder of 2016" said Mike Walkinshaw, CEO of TIMIA. "At the same time, our first priority remains ensuring our portfolio is of the highest credit quality possible in our asset class."

For full financial statements and the Management Discussion and Analysis please see the Company's information on www.sedar.com.

About TIMIA Capital Corp.

TIMIA is a revenue financing company that provides investment capital to Canadian technology companies in exchange for a royalty stream on revenue. This new financing option complements both debt and equity financing while allowing entrepreneurs to retain control of their own business.

RBF is attractive to companies that are not yet qualified for traditional bank debt but do not want to suffer the dilution and control issues associated with equity issuances. Revenue growth and high gross margins are key attributes required by applicants in order for the successful application of RBF.

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.

ON BEHALF OF THE BOARD

Michael Walkinshaw, Chief Executive Officer

Disclaimer for Forward-Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's issuance of Debentures, payment of interest thereon, acceptance of the offering by the TSX Venture Exchange and the Company's use of the proceeds of the offering, including investment in RBF instruments. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. The Company disclaims any obligation to update the forward-looking statements except as required by law.

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