CPE News (5/25/2020) – TIMIA Capital Corporation (TSX-V: TCA; OTCQB: TIMCF) has entered into a 2-year $2 million investment facility for Retail Innovation Labs LLC trading as Cova Software, a Denver, Colorado and Vancouver, BC based developer of point of sale (POS) and Inventory Management platform designed to streamline cannabis retail.
$1,250,000 of the facility was advanced at the closing and an additional $750,000 may be disbursed upon certain milestones being met.
Cova Software has offices in Regina, Winnipeg, and Toronto.
photo credit: Cova Software
News Release
TIMIA Invests in Cova Software Through New Finance Facility
~Cova selects TIMIA’s non-dilutive finance solution to support the expansion of its award-winning technology platform, POS and inventory management system for cannabis retailers~
VANCOUVER, May 25, 2020 /CNW/ – TIMIA Capital Corporation (“TIMIA” or the “Company”) (TSX-V: TCA/OTC: TIMCF) announced that it has entered into a $2 million investment facility for Retail Innovation Labs LLC doing business as Cova Software (“Cova”), a Denver, CO and Vancouver, BC-based developer of an award-winning point of sale (“POS”) and Inventory Management platform designed to streamline cannabis retail. The 2 year financing facility includes an initial disbursement of $1,250,000, which has been advanced, and an additional $750,000 to be disbursed upon certain milestones being met over the term of the agreement.
“Cova has developed the market leading technology platform and POS currently powering nearly 90% of Ontario cannabis stores and over 50% of all cannabis retailers in Canada,” said Rob Foxall, Vice President of Origination of TIMIA. “Given their success, the team at Cova has selected TIMIA’s innovative non-dilutive financing to support their continued growth. 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.”
“We are seeing tremendous growth in the highly regulated cannabis industry and our software solution allows retailers to successfully navigate and grow in this complex and changing environment,” said Gary Cohen, CEO of Cova Software. “Recognizing the need for expansion capital, we explored several alternatives and found that TIMIA had the best solution for our needs. We look forward to working with the team at TIMIA as we continue to strengthen our competitive position in the growing cannabis industry.”
TIMIA has developed a proprietary, scalable, technology-driven fintech platform targeting higher risk-adjusted returns on its finance solutions, creating value for shareholders, and leveraging its non-dilutive capital structure. The Company is driving growth of its investment portfolio by providing non-dilutive investment facilities to revenue producing growth companies in the software as a service or SaaS industry.
Growing SaaS companies, such as Cova, requiring financing are invited to register with TIMIA through its fintech platform. Under a revenue-based financing model, TIMIA advances capital to SaaS businesses with recurring revenue streams allowing the portfolio company to make monthly payments, which are a combination of principal and interest, to TIMIA with a repayment schedule sculpted to the portfolio company’s revenue streams. The amounts advanced are secured and may be repaid early. TIMIA expects to make further investments in the coming months, in the pursuit of its business model, which is to earn a combination of monthly payments and periodic gains on investments.
About Cova
Cova is an award-winning POS and Inventory Management platform designed to streamline cannabis retail. A compliance-first company, Cova not only meets all federal and provincial regulations, but constantly adapts to changing rules to make compliance simple for owners and employees, reducing the risk of infractions and fines. In addition to automated compliance features such as 1-click provincial reports, Cova offers an intuitive, user-friendly design and lightning-fast transaction time. Its technology platform currently powers nearly 90% of Ontario cannabis stores in Ontario, with 52% of all cannabis retailers in Canada choosing Cova. This makes Cova the most robust and reliable cannabis POS system available with virtually no downtime, even on 4/20. Headquartered in Vancouver, BC, Cova’s team spans Canada, with offices in Regina, Winnipeg, and Toronto. Learn more at www.covasoftware.com.
About TIMIA Capital Corporation
TIMIA Capital Corporation is a specialty finance company that provides growth capital to technology companies in exchange for payments based on monthly revenue. This alternative financing option complements both debt and equity financing, while allowing entrepreneurs and existing stakeholders to retain ownership and control of their business. TIMIA’s singular focus is the fast growing, global, business-to-business Software-as-a-Service (or SaaS) segment. We align ourselves with entrepreneurial management teams growing their sales from $2 Million to $20 Million in Annual Recurring Revenue. For more information about TIMIA Capital Corporation, please visit www.timiacapital.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE TIMIA Capital Corp.
For further information: Darren Seed, Vice President, Capital Markets & Communications, Mike Walkinshaw, CEO, TIMIA Capital Corporation, (604) 398-8839, IR@timiacapital.com