TIMIA Capital Corporation (TSX-V: TCA and OTC: TIMCF) is investing in one of Canada’s leading retail software solutions.
The capital firm said Monday it entered into a $2 million investment facility with Retail Innovation Labs LLC, which conducts business as Cova Software.
According to a statement, the two-year financing facility includes an already-advanced injection of $1.25 million, and an additional $750,000 that will be disbursed “upon certain milestones being met over the term of the agreement.”
Cova Software is a tech company with primary operations in Denver, Colorado, and Vancouver, British Columbia. Cova’s purpose-built software solutions are widely used by Canadian cannabis retailers.
Cova’s point-of-sale system is used by 90 per cent of Ontario’s cannabis stores and over 50 per cent of all the country’s retailers, TIMIA vice president Rob Foxall said in the statement.
“Given their success, the team at Cova has selected TIMIA’s innovative non-dilutive financing to support their continued growth,” he said. “Our financial solution is a great alternative for organizations like Cova that require funding to increase their customer base and drive sales, while maintaining equity ownership and control over their company.”
Cova CEO Gary Cohen says his company is seeing tremendous growth in the regulated market.
“Recognizing the need for expansion capital, we explored several alternatives and found that TIMIA had the best solution for our needs,” Cohen said. “We look forward to working with the team at TIMIA as we continue to strengthen our competitive position in the growing cannabis industry.”
TIMIA says it developed a proprietary fintech platform that targets higher risk-adjusted returns on its finance solutions, which creates value for shareholders and leverages its non-dilutive capital structure.
The company says it’s driving investment portfolio growth by providing non-dilutive investment facilities to revenue-producing companies in the software as a service sector (SaaS), like Cova.
Under a revenue-based financing model, TIMIA says it advances capital to SaaS businesses with recurring revenue streams. According to the company, businesses in its portfolio make monthly payments to TIMIA with a custom repayment schedule based on a business’s revenue stream.
The amounts advanced are secured and may be repaid early, TIMIA says. It expects to make more investments in the coming months to advance its business model of collecting monthly payments and periodic gains on investments.
Top image via Cova Software