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TIMIA Capital to Acquire Controlling Interest in Specialty Finance Company
TIMIA Capital to Acquire Controlling Interest in Specialty Finance Company Cana...
About this update from Montfort Capital Corp
[{"type":"text","content":"\n \n \n \n TIMIA Capital to Acquire Controlling Interest in Specialty Finance Company\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n ~TIMIA announces letter of intent to acquire a controlling interest in a second specialty finance company in 2022; Combined company pro forma assets surpass $450 million~\n \n \n \n \n \n VANCOUVER, BC\n \n \n ,\n \n \n May 12, 2022\n \n \n /CNW/ -\n \n TIMIA Capital Corporation (\"TIMIA\" or the \"Company\")\n \n (TSXV: TCA) (OTCQB: TIMCF)\n \n ,\n \n a leading innovator in specialty private credit, is pleased to announce it has agreed to acquire approximately 77% of a Canadian-based leading provider of specialty finance lending (the \"Target\"), for a purchase price of approximately\n \n $9.24 million\n \n . The total common share valuation of the specialty finance company is\n \n $12 million\n \n . The vendors of the Target (the \"Vendors\") and the Target's board and management are at arm's length to the Company.\n \n \n \n \n \n \n \n \n \n The proposed acquisition is currently subject to a non-binding letter of intent dated\n \n March 24, 2022\n \n . Since signing the non-binding letter of intent, the Company has undertaken due diligence and has recently determined to proceed with negotiation of definitive transaction agreements. Due to competitive issues related to the acquisition, the name of the Target will only be disclosed after closing of the transaction, which is expected on or around\n \n June 30, 2022\n \n .\n \n \n The acquisition will complete by way of\n \n $7.7 million\n \n cash payment to the Vendors upon closing, plus a\n \n $1.54 million\n \n unsecured promissory note, bearing interest at 5% per annum payable in 12 months. The Company expects to finance the acquisition through the issuance of debt, and does not contemplate issuing common or preferred stock as part of the purchase price.\n \n \n For fiscal 2021, the Target had approximately\n \n $250 million\n \n in assets at year end and generated\n \n $6.5 million\n \n in revenue with an a...