TIMIA Capital Corporation (CVE:TCA) (OTCMKTS:TIMCF) announced Tuesday that it has entered into a US$3 million investment facility for a Connecticut-based software company.
The financing facility includes an initial disbursement of US$1.4 million, which has been advanced, and a further US$1.6 million to be disbursed upon certain milestones being met over the term of the agreement, according to a statement.
For competitive reasons, the name of the software company has not been disclosed at this time, TIMIA said.
READ: TIMIA Capital expands limited partnership to C$20M, making additional funding available for SaaS investments
"We're providing growth capital to a great company looking to expand their product platform," said Greg Smith, CIO of TIMIA. "By going with non-dilutive capital from TIMIA, they avoid the dilutive impact of equity financing and achieve their financing needs."
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.
Through its fintech platform, the Vancouver-based investment company continuously seeks new and exciting investments in the software as a service, or SaaS industry.
Under TIMIA's revenue-based financing model, the company advances capital to a SaaS business with a recurring revenue stream that allows the portfolio company to make monthly payments to TIMIA that are a combination of principal and interest with a repayment schedule sculpted to the portfolio company's revenue streams. The amounts advanced are secured and may be repaid early.
Contact the author: [email protected]
Follow him on Twitter @PatrickMGraham