TIMIA CAPITAL CORP CEO Michael Walkinshaw (TCA) (TIMCF) – RICH TV LIVE – MARCH 13, 2019 – TODAY I INTERVIEW CEO Michael Walkinshaw (TCA) (TIMCF) TO DISCUSS THE FUTURE OF TIMIA CAPITAL CORP.
And ceo interviews brought to you by rich tv live hi how’s everybody doing today this is your host rich from rich tv live and i’m here with a very special guest it is michael walkinshaw the ceo of tamiya a publicly listed company in canada and the united states in canada under the symbol tca and in america under the symbol ti m cf how are you doing today michael
I’m doing great reg how are you i’m doing very good i’m excited to have you here on the show today and i’m excited to learn more about your company why don’t we just get started with who is tamiya and what do they do yeah so tamiya capital provides innovative kinds of financing to recurring revenue software companies and what’s unique about that is that it’s really
Difficult for recurring revenue software companies to get that financing well we’ve created a couple very unique financing products that we provide to them and they’re very happy to pay for it debt financing interesting i was reading a little bit about it and so you guys make principal plus interest is that correct yeah so what we do is we provide a long-term financing
Facility for an entrepreneur who’s got a company that say has a million dollars per year of revenue okay and normally they would go out to angels or venture capital funds to get financing but for these specific kinds of companies often it’s a better idea if they could go out and get debt these companies we like to use the term they’re like the rodney dangerfield
Of small and medium businesses software companies have no assets so they can’t walk into a bank and get debt but they’ve really are amazing companies they’ve got good growth they’ve got super high gross margins all they’re doing is investing in growth and so there’s a really strong case for somebody to give these guys debts so that they could grow their company
And then eventually sell them in a few years for a much higher value so that’s what we do we give them debt when nobody else will and we allow the entrepreneurs to keep a much greater percentage of the company than they currently already have very good very good and why are you targeting the software or sas market yeah so as i said it’s like the rodney dangerfield
Of small and medium enterprises they can’t get any respect and and the reason they can’t get any respect is because they don’t have any assets but these companies are rock solid performers they deliver year-over-year growth rates that are very sustainable 20 30 40 50 % they have a very high retention of customer base so on any given year they might keep 90 percent
Of their customers year-over-year and it’s a very very predictable and statistically quantifiable number so we use the revenue growth and the number of customers they retain in order to decide if they’re a good credit risk for us to loan money to or not on top of that their gross margins are 75 or 80 percent so for every sale most of the revenue flows down to the
Bottom line so michael how do you participate in the upside of each company’s growth yeah so the financing we’re providing the entrepreneur is helping them grow their business from 1 million to 5 million or from 1 million to 10 million and the multiples in this space for any any public company investors that are following software companies they’re typically the
Valuations of these companies are around 6 times revenue so you can see that if we’re investing giving debt to a company that’s at 1 million revenue its valuation would be around 6 million but as they get to 10 million they can in big it they have a valuation that’s around 60 million so what happens from our perspective is we provide them with the debt facility
We make a very healthy return on the on the loan you know in the form of a current monthly principal and interest payment but on top of that if they sell their company during the term of the loan well they have to buy out or loan and and the buyout for that loan is a very respectable return for tamiya on top of the base return alone and that’s where our investors
Make money is we make money both from the base payments that we receive but we also make them from the bonus payments that we get when our companies exit or get sold very good now another thing i was looking into owes do some research and you guys did a deal with a limit limited partnership what does the announcement about the new limited partnership mean yeah the
Limited partnership is really the fund raising of our the future of our fundraising model there are a number of different public market comparables that are out there such as in canada brookfield asset management who use a very similar model and that model is a public company that raises external capital through limited partnerships and earns both a management fee
And a percentage of the profit of the limited partnership why that’s great for shareholders is because we don’t have to raise a lot of equity in order to dilute the shareholders in order to make the debt facilities we get the capital from outside people our shareholders are effectively owners of a business that is a fund manager and not a direct investor very good
And what are the company’s plans for the next 12 months so we’re going to continue to take the capital we raised and this super exciting ten million dollar limited partnership that we just announced a few days ago we’re gonna take that capital we’re gonna deploy it into a whole bunch of new and exciting software companies over the next few months and then later
On in the year i think the investors could expect us to do another limited partnership where we will raise more money and put it into and continue the cycle of raising money and then putting it into a whole bunch of limited partnerships and all the while investors should expect that some small percentage of our portfolio on a quarterly basis will exit and we’ll
See bonus gains coming into our company as a result of those exits so it’s a growth in assets through these limited partnerships combined with an exciting investment program where we’re putting that money to work in a whole lot of small and exciting software companies that sounds fantastic if somebody that is watching this and we’ve got over thousand followers
And subscribers worldwide in over 60 countries if someone was watching this and they wanted to get in contact with you or they’re interested in making an investment they’d like to participate in some type of capacity what’s the best way for them to get in contact with you yeah absolutely we love talking to investors so any investors that want to reach out and
Contact us we’d be more than happy to do that there’s a couple different ways one is on our website we have a contact us form and there’s a dropdown button for investors so if you tag yourself as an investor and throw in some questions we will reach out and either call you or email with you directly whatever you prefer there’s a phone number on our website so if
You call that phone number you can you can get to our investor relations department and you can have a conversation with a real live human in our investor relations department as well we absolutely love talking to investors so please reach out and we’d love to have a conversation okay great outside of that if there’s anything that an investor should know before
We leave today about the company michael what would it be so tamiya capital is a very tightly held company we have only 36 million shares outstanding and we are an exciting opportunity to get involved in a fund management model the likes of which you only see as massive companies on the nyc so a couple of the american comparables blackrock kkr hercules technology
Lending those are very big companies that you can go invest in today we offer you an opportunity to get into any one of those kinds of plays at a much earlier stage with much more attractive valuations so we’re not your normal early-stage company we we show net income positive we have good growth but we are absolutely an opportunity to get in early on some of those
Much longer much larger much bigger plays that that you know are march pencils well that sounds fantastic i’m very interested to see the company grow i’ve never enjoyed the time here michael hopefully we can do this again our community will be watching i have added the stock to radar to my watchlist will continue to watch it will continue to you know break any
News that happens and at this point in time what we want to do is wish you the best of luck on your success yeah we you guys are able to achieve all of your goals and the investors that are watching are able to benefit along the way rich i really appreciate your time today thank you very much for your great questions and i look forward to conversations with any
Investors that would like to reach out that’s fantastic thank you very much this is ceo michael walkinshaw have a great day michael and we’ll talk to you soon thanks rich take care bye bye everybody bye
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TIMIA CAPITAL CORP CEO Michael Walkinshaw (TCA) (TIMCF) By RICH TV LIVE
