TIMIA Capital Corp.
TSX VENTURE : TCA

TIMIA Capital Corp.

March 29, 2016 10:30 ET

TIMIA Capital Announces Positive Net Income in Fiscal 2015

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 29, 2016) - TIMIA Capital Corp. ("TIMIA" or the "Company") (TSX VENTURE:TCA) is pleased to announce that it has achieved positive net income in its fiscal 2015 year end results.

During the year ended November 30, 2015, the Company posted net income of $391,690 compared to a net loss of $156,633 for the same period last year. The Company earned $0.02 per share in the 2015 year vs. a loss of $0.01 per share in the 2014 year.

The Company's improved financial results are primarily due to: (i) the commencement of its Revenue Based Financing ("RBF") model, (ii) a net increase in the unrealized value of its equity investments, and (iii) the realization of proceeds from its equity investments.

Revenue Based Finance

The Company commenced its Revenue Based Financing ("RBF") model during the year and has begun to receive its monthly royalty payments from investee companies. At November 30, 2015, the Company had made 2 RBF investments, with a 3rd investment being announced in February, 2016. The royalty income and related transaction fees from these investments has positively contributed to the Company's net income. The Company had $136,398 in revenue in this fiscal year compared to $62,254 in the same period last year. This increase in revenue in 2015 was primarily from royalty and interest income generated under the Company's new RBF model.

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.

Equity Investments

The Company holds equity investments in private green energy related companies, made under its prior investment model. A number of changes occurred to the equity portfolio during the year as the Company transitioned to its RBF model:

  • The Company successfully sold its equity position in dPoint Technologies Inc. during the 2015 fiscal year for proceeds of $1,030,909, which represented a 2.95X cash on cash return.
  • The Company successfully completed its investment in CamDo Solutions Inc. and recognized an unrealized gain of $385,499.
  • The Company formally disposed of two of its investments and recorded a realized loss on the disposals of $677,675. These two investments had been written down to zero in prior periods.

During this fiscal year, the Company recognized a realized gain of $3,234 on disposition of its investments and a $531,245 change in unrealized loss on the remaining investments. Of the $156,633 net loss last fiscal year, $88,928 was due to the change in unrealized losses on investments.

Cash Position

As at November 30, 2015, the Company's cash balance was $409,871 and working capital was $1,321,849. Including in the working capital amount is $917,246 of funds receivable which are funds from the sale of the dPoint Technologies investment. The cash balance is a result of the $250,000 equity private placement undertaken by the Company during the year and the $1,767,500 of convertible debentures issued during the same period. Subsequent to yearend, the Company announced the final closing of its convertible debenture offering, bringing the total raise on its convertible debenture offering to $2,051,000.

Outlook for the 2016 Year

The Company will continue to monitor and increase its RBF portfolio of investments while seeking to opportunistically monetize its equity investment portfolio.

The Company's RBF agreements are structured to allow technology companies to fund their growth in a manner that matches the growth of their business. Their monthly payments grow as their revenue grows allowing the owners to fund their expansion from future revenue. Management evaluates these investments in terms of their current revenue and historic revenue growth, future expected revenue growth, gross margin, earnings, cash flow, market position, and management quality. Management will be monitoring each investment in the portfolio in terms of its growth against plan and other key financial metrics. Given its focus on the technology sector, management also expects some of the underlying investee companies to be sold or achieve a similar exit for its investors during the terms of our RBF agreements. In these cases, the Company will exit from its investment in accordance with its financing agreement at agreed upon exit values.

"We are very excited about delivering positive earnings in our 2015 financial results," said Mike Walkinshaw, CEO of TIMIA, "And we look forward to growing our cash flow into 2016 through the expansion of our RBF investment portfolio."

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.

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

TIMIA Capital Corp.

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.

Contact Information