logo-loader

TIMIA Capital's first quarter net income set to be boosted by successful exit of BasicGov financing

Published: 09:07 09 Jan 2020 EST

Timia Cap Corp. -
Last March, it provided C$2 million to BasicGov Systems, which offers state and local governments a cloud-platform to streamline operations and cut costs

TIMIA Capital Corporation (CVE:TCA) (OTCMKTS:TIMCF) says its first-quarter net income will be positively impacted by the buyout of the financing it had provided to software group BasicGov Systems Inc. 

Specialty finance company TIMIA provides growth capital to tech companies in exchange for payments based on monthly revenue and its focus is on the fast-growing, global, business-to-business software-as-a-service (SaaS) segment. 

READ: TIMIA Capital increases investment capacity to fund growing SaaS companies

Last March, it provided C$2 million to Vancouver-based BasicGov Systems, which offers state and local governments a cloud-platform to streamline operations and cut costs. TIMIA made a 40% return in nine months.

"Over the last nine months, BasicGov has paid TIMIA $2.8 million in a combination of return of principal, interest and early redemption payments. The buyout of this financing is expected to generate a gain in excess of $400,000, that will positively impact the company's Q1 2020 consolidated net income," said TIMIA in today's statement.

"Over the past five years we've designed and developed a scalable fintech platform to identify and invest in exciting and growing software companies like BasicGov," Mike Walkinshaw, the chief executive of TIMIA, said.

Playing a part in success

"We're very happy to see our investee companies be successful, attract additional capital allowing them to graduate to the next stage of their growth, and that our non-dilutive financing has played a part in this success.

"We wish the BasicGov team every success as we turn our attention to reinvesting this capital into new and exciting companies."

TIMIA added that it was continuously seeking new and productive investments in the software as a service (SaaS) industry.

The amounts it advances are secured and may be repaid early. It expects to make further investments in the coming months, it said, to pursue its business model, which is to earn a combination of monthly payments and periodic gains on investments.

Contact the author at giles@proactiveinvestors.com

Full interview: Timia Capital releases strong year-end financial numbers

Timia Capital (CVE: TCA) CEO Mike Walkinshaw joined Steve Darling in the Vancouver office of Proactive to discuss the company’s end year financial number that saw them increase revenue by 89%. Walkinshaw also told Proactive about the current market condition and why their vetting process of...

on 03/10/2020