TIMIA Expands Investment Portfolio with US$3M Finance Facility for Zmags
Zmags looks to TIMIA to provide a non-dilutive finance facility to assist in the expansion of its Creator™ platform
VANCOUVER, Feb. 4, 2020 /CNW/ - TIMIA Capital Corporation ("TIMIA" or the "Company") (TSX-V:TCA/OTC: TIMCF) announces that it has entered into a US$3 million investment facility with Zmags, the leader in rich digital experiences for retailers based in Boston, MA. The financing facility includes an initial disbursement of US$1,500,000, which has been advanced, and a further US$1,500,000 to be disbursed upon certain milestones being met over the term of the agreement.
"Zmags is a growing technology company with great prospects as it looks to expand its Creator platform and services offerings," said Greg Smith, CIO of TIMIA. "Their corporate finance team was looking at a number of different alternatives and felt that TIMIA's non-dilutive capital was the best choice for their financing needs. With the investment from TIMIA, Zmags avoids the dilutive impact of equity financing at an attractive market rate. We look forward to watching this exciting company grow."
TIMIA has developed a proprietary, scalable, technology-driven fintech platform targeting higher risk-adjusted returns on its finance solutions, creating value for shareholders, and leveraging its non-dilutive capital structure.
TIMIA invests in growing software as a service ("SaaS") companies like Zmags that require creative financing options. Under TIMIA's revenue-based financing model, TIMIA advances capital to SaaS businesses with recurring revenue streams that allows the portfolio company to make monthly payments, that are a combination of principal and interest, to TIMIA with a repayment schedule sculpted to the portfolio company's recurring revenue streams. 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.
About Zmags
Zmags' Creator™ platform enables retailers to design and publish interactive, shoppable experiences – outfit builders, shop-the-room, quizzes, email landing pages – without any IT involvement or coding. Leading brands like Ethan Allen, AG Jeans, Dell, Gardner's Supply, and Shiseido use Creator by Zmags as their Agile Content Hub. For more information about Zmags, please visit www.zmags.com.
About TIMIA Capital Corporation
TIMIA Capital Corporation is a specialty finance company that provides growth capital to technology companies in exchange for payments based on monthly revenue. This alternative financing option complements both debt and equity financing, while allowing entrepreneurs and existing stakeholders to retain ownership and control of their business. TIMIA's focus is the fast growing, global, business-to-business SaaS segment. We align ourselves with entrepreneurial management teams growing their sales from $1 Million to $10 Million in Annual Recurring Revenue. For more information about TIMIA Capital Corporation, please visit www.timiacapital.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 anticipated revenue increase as a result of the finance facility, further disbursements upon the completion of certain milestones 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.
Darren Seed, Vice President, Capital Markets & Communications, Mike Walkinshaw, CEO, TIMIA Capital Corporation, (604) 398-8839, [email protected]
Share this article