TIMIA Capital Corporation (CVE:TCA) (OTCMKTS:TIMCF) has provided retailer-focused digital group Zmags with a US$3 million finance facility to expand its offering.
TIMIA is a specialty finance company providing growth capital to tech firms in the fast-growing, software-as-a-service (SaaS) segment.
READ: TIMIA Capital's first quarter net income set to be boosted by successful exit of BasicGov financing
"Zmags is a growing technology company with great prospects as it looks to expand its Creator platform and services offerings," said Greg Smith, the chief information officer (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."
Zmags' Creator platform enables retailers to design and publish interactive, shoppable experiences, without any IT involvement or coding.
Brands which already use Creator include Ethan Allen, Dell and Gardner's Supply.
Timia has already advanced Zmags with an initial disbursement of US$1.5 million, and a further US$1.5 million will be disbursed upon certain milestones being met over the term of the agreement.
Shares in Toronto nudged up 2.63% to C$0.20 each.
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Contact the author at giles@proactiveinvestors.com
