logo-loader
viewTIMIA Capital Corp.

TIMIA enters into C$2M financing package with data discovery platform Echosec

The specialty finance company’s $2 million capital injection will help Echosec to increase its marketing and sales efforts to expand within their existing market

data
TIMIA is a specialty finance company which provides growth capital to software-as-a-service tech companies

TIMIA Capital Corporation (CVE:TCA) (OTCMKTS:TIMCF) announced Wednesday that it had entered into a C$2 million investment facility for software company Echosec, a web-based data discovery platform that helps organizations detect online data for threat intelligence.

The financing package includes an initial disbursement of $1 million, with a further $1 million to be granted on the basis of a set of milestones being met over the agreement’s three-year term.

The specialty finance company’s $2 million capital injection will help Echosec to increase its marketing and sales efforts to expand within their existing market, and explore new promising opportunities, said Greg Smith, CIO of TIMIA in a statement.

"We're providing growth capital to a great company who understand how to provide value and service through their software with established customers ranging from small business to enterprise,” he said.

READ: TIMIA Capital's revenue-based financing aims to lever up tech entrepreneurs

Under TIMIA’s revenue-based financing model, the company advances capital to a software-as-a-service (SaaS) business with a recurring revenue stream that allows the portfolio company such as Echosec to make monthly payments to TIMIA. The repayment schedule is tailored to the portfolio company’s revenue streams.

"The cost of capital includes critical factors such as dilution, debt servicing and access to more capital as we scale," said Karl Swannie, CEO of Echosec. "Finding flexible and non-dilutive financing solutions was our goal, and TIMIA provided the capital within a framework that worked for us and our team."

TIMIA said in a statement that it expects to make further investments in the coming months.

Shares of TIMIA closed at C$0.22 in Canada and US$0.17 in the US on Tuesday.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

Quick facts: TIMIA Capital Corp.

Price: 0.2 CAD

TSX-V:TCA
Market: TSX-V
Market Cap: $7.4 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of TIMIA Capital Corp. named herein, including the promotion by the Company of TIMIA Capital Corp. in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

2 min read