REVENUE FINANCING. Income and Growth from Private Technology Companies.

Transcription

1 REVENUE FINANCING Income and Growth from Private Technology Companies.

2 Disclosure Not an Offer to Purchase or Sell Securities. This overview is for informational purposes and is not an offer to sell or a solicitation of an offer to buy any securities in TIMIA Capital Corp. (the Company ), and may not be relied upon in connection with the purchase or sale of any security. Forward-Looking Statements and General Disclaimer This presentation is Copyright 2015 TIMIA Capital Corp., which reserves all rights in and to this presentation. TIMIA Capital Corp. (the Company ) is a public company listed on the TSX Venture Exchange (TSX-V: TCA), with a principal office in Vancouver, British Columbia, Canada. The statements contained in this presentation which are historical in nature are accurate to the best of our knowledge. However, the Company makes no assurances and does not guarantee that the statements included herein are accurate. Forward-Looking Statements (Safe Harbor Statement): The information set forth in this presentation may contain forward-looking statements that are not historical fact and are subject to certain risks and uncertainties. Statements in this presentation which are not purely historical in nature, including statements regarding beliefs, plans, expectations or intentions regarding the future, are forward-looking. Statements that are not historical facts, including statements that are preceded by, followed by, or that include such words as estimate, anticipate, believe, plan, intend, expect, may or should or similar statements, are forward-looking statements. Forward-looking statements which may be contained within this presentation include, but are not limited to, statements regarding the economic prospects of the Company s investments, general economic conditions, the Company s future plans or future revenues, timing of potential expansion or improvements. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties include, but are not limited to, the Company s ability to raise sufficient capital to fund investment, changes in general economic conditions or financial markets, changes in interest rates, litigation, legislative, judicial, regulatory, political and competitive developments in Canada and world-wide, technological and operational difficulties and changing foreign exchange rates. There can be no assurance that the Company s efforts will succeed and ultimately achieve sustained commercial success. These forward-looking statements are made as of the date of this presentation. There can be no assurance that beliefs, plans, expectations or intentions of the Company will prove to be accurate. Cautionary Note to U.S. Investors: As of the date of this Presentation, the Company has made no filings with the Securities Exchange Commission ( SEC ), and makes no representations that it has or will have a duty to make filings with the SEC. The Company is not authorized to offer any securities to residents of the United States of America. 2

3 This is SAM 3

4 Entrepreneur cloud based software company 4

5 Cloud Based Software?? RENTS rather than SELLS Companies RENT for YEARS. Constant improvement Customer Acquisition and Customer Retention are KEY. 5 to 10 Year Cashflow Stream Revenue Year 3 Year 4 Year 2 Year 1 5

6 Sam s Business at Year 4 $2.5M Recurring Revenue in LTM 250 Customers $10,000 per Customer per Year 95% Customer Retention Rate 70% Gross Margins Growth 30% Year over Year Reven ue 6

7 Things are going GREAT! BUT 7

8 SAM NEEDS Sales and Marketing Staff She needs tools Videos, online advertising, more staff. She needs to add Product Features She needs to sell internationally. What Sam really needs. 8

9 Is CAPITAL 9

10 Venture Capital? She doesn t have > 200% Annual Revenue Growth Bank? She doesn t have enough hard assets to secure against. 10

11 Sam has: CASH FLOW GROWTH The solution? REVENUE FINANCING 12

12 $$$ Sam s Company Value Sam s Revenue Payments to TIMIA Time 13

13 TIMIA provides financing and takes a share of Sam s future revenue No dilution REVENUE FINANCING Payments flex with her revenue growth TIMIA makes a GREAT return Sam gets to grow her Company! 14

14 How Investors Benefit 15

15 Income from Private Technology Companies Debentures Common Shares INVESTMENT MONTHLY DIVIDENDS AND INTEREST TIMIA CAPITAL CORP. (TSXV:TCA) ROYALTY INVESTMENT MONTHLY ROYALTY PAYMENTS Portfolio of Royalty Investments 16

16 Our Model Drives Capital Gains High Cashflow Yield $1 Invested = $1.50 in Market Cap Stock Price Buyout of Royalties Time Exercise of Deal Warrants 17

17 Significant Free Cash Flow at Scale For Every $1 Million Invested in Royalty Agreements: Royalty Income / Transaction Fees $240K Interest Expense on Debentures Operating Costs, PubCo. Costs, Provisions, Taxes Free Cashflow $40 K $100 K $100 K Return on Equity > 15% Potential Dividend Yield > 10% 18

18 Growing Payments on Each Deal $350,000 $300,000 Annual Payments per Million Invested > 20% Growth $250,000 $200,000 $150,000 $100,000 $50,000 $0 Current Year One Year Two Year Three Deal 1 Deal 2 Deal 3 Deal 4 19

19 100 Base LTM Revenue TIMIA Portfolio Month of TIMIA Investment 20

20 Revenue Finance (Royalty Streaming for Technology) A Proven Model 21

21 Total Return (Annual %) Royalty Streaming A Proven Model for Returns Industrial/Tech Ag Mining Franchise Years 5 Years 2 Years 5 Years 5 Years 1 Year Capital Gain Dividends Total As of March 31,

22 Our Technology Focus 24

23 Cloud Software is a Huge Global Market Billions USD Cloud Software Revenue 25% CAGR Our Total Attainable Market: ~ $6 Billion to ~$12 Billion in Investments and growing Source: Forrester 25

24 Cloud Software Growth Rates 26

25 Portfolio Targets -5 Years -3 years Today +3 Years +5 Years Undisclosed

26 Customer Value Proposition 28

27 Customer Testimonial 29

28 What Traction have we Achieved? 32

29 Traction Since August, 2015 Funds Raised Investments $4.1 M 4 Investments $2.65M working +$2.75M in investment backlog Platform Brand North American Network Automated Systems 33

30 Significant Growth 37

31 2016 to 2018 Financial Metrics Royalty Investments at Year End $15.0M $50 M $115 M Deals ~12 ~30 ~60 Revenue $1.2M $10.5 M $23.3M Interest Expense ($375 K) ($1.1 M) ($2.6M) Operational Expenses ($816 K) ($4.0 M) ($8.5 M) Loan Loss Provision ($176 K) ($1.0 M) ($2.2 M) Tax $0 ($0.6 M) ($2.8 M) Net Income ($140 K) $3.8 M $7.1 M Net Free Cashflow ($52 K ) $4.2 M $8.8 M FCF per Share ND $0.00 $0.05 to $0.08 $0.10 to $0.17 FCF per Share - FD $0.00 $0.04 to $0.07 $0.08 to $

32 Experienced Management 40

33 Strong Experienced Team Mike Walkinshaw Chief Executive Officer Greg Smith Chief Investment Officer Mike Volker Executive Chairman 12 years in institutional venture capital Successful investment track record, active angel investor and board member. Strong linkages to the Western Canadian private investment ecosystem Member of Board of Canadian Venture Capital Assoc. Chartered Accountant, 1993 Experienced Debt & Venture Investor Strong track record in technology debt over past 7 years with over 120 deals initiated and annual net returns of > 16% Deep network in Western Canadian tech ecosystem Software Entrepreneur with successful exit 5 Year Technology Debt IRR : Gross: 22.5% Net: 16.6% Co-Founded GreenAngel Successful entrepreneur in technology sector Sold first company in 1981, computer terminals Leader in angel networks across Canada Active public market director 41

34 How to get Involved? CAPITAL GAINS FOCUS TSX-V : TCA STABLE MONTLY RETURN with CAPITAL GAINS 42

35 Our Offering TIMIA IS OFFERING: $1M OF DEBENTURES WITH 50% WARRANT COVERAGE Stable Monthly Income 8% Interest Paid Monthly Pari Passu Senior Debt in TIMIA Secured by both Debt and Equity Assets Capital Gains Appreciation Stable Monthly Income Debenture Warrants Capital Gains 50% Warrant Coverage, $0.20 strike price Comp s have shown capital gains based upon consistent dividend distribution 43

36 Value of $10,000 Investment over 3 Years $ Value 28% IRR Years from Initial Investment 44

37 Capital Structure Shares Outstanding: 22,361,000 Warrants and Options: 7,654,000 Convertible Debentures ($2.0M, 14 cent conversion): 14,286,000 Fully Diluted Shares Outstanding: 44,301,000 Symbol: Market Capitalization: Officers and Directors: TSX-V : TCA $3.0 Million 18,100,000 (40.8% of FD) 45

38 Come Visit us on the Web Join our quarterly newsletter Join the conversation on Linked In: Timia-Capital 46