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TIMIA Announces Significant Transaction with $10.5 Million Limited Partnership
~TIMIA Broadens Fintech Platform through non-dilutive capital structure and significantly in...
About this update from Montfort Capital Corp
[{"type":"text","content":"TIMIA Announces Significant Transaction with $10.5 Million Limited Partnership~TIMIA Broadens Fintech Platform through non-dilutive capital structure and significantly increases investment capacity~VANCOUVER, BC / ACCESSWIRE / March 11, 2019 / TIMIA Capital Corporation (\"TIMIA\" or the \"Company\") (TSX-V: TCA / OTC PINK: TIMCF) today announced the formation and structure of $10.5 million in TIMIA's first Limited Partnership (\"LP\"). External investors will invest $7.6 million in the LP with TIMIA retaining a $2.4 million interest. Additional subscription agreements totaling $500,000 have been received and are expected to close shortly for a total LP value of $10.5 million. The LP, TIMIA Capital 1 Limited Partnership, will be governed under the terms of a limited partnership agreement with TIMIA Capital GP Inc., a wholly owned subsidiary of TIMIA, acting as the LP's General Partner (\"GP\").Existing financing agreements with TIMIA's portfolio of SaaS companies, representing approximately $8.2 million in value will be transferred into the LP with related monthly payments being distributed, after deduction of fund expenses, to LP unit holders, including TIMIA, on a monthly basis. The remaining $2.3 million will be invested in SaaS companies through TIMIA's fintech platform and proprietary investment algorithms. In exchange for transferring the loan facility future cash flows into the LP, TIMIA will receive $5.8 million in cash on its balance sheet, and a $2.4 million interest in the LP.Transaction Highlights Include: Accretive to the Company with no dilution to the shareholders, TIMIA Capital will retain at least a 20% interest in the LP, thus still participating in a proportionate share of the revenue from the current investment portfolio while increasing its consolidated cash position to approximately $8.7 million Assets under management go from approximately $15 million to approximately $23 million, representing roughly a 55% increase, TIMIA will receive a 1.5% servicing fee to manage the LP as its GP, TIMIA will receive a performance fee based upon the profit of the LP for the life of the fund, subject to investors achieving their preferred return first TIMIA will have approximately $8.7 million of new capital to invest in SaaS companies in North America\"This transaction is a significant milestone for the Company and its sh...