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TIMIA Capital TECHNOLOGY-ENABLED LENDING FOR GROWING SOFTWARE COMPANIES TSXV TCA

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Page 1: New IR Pitch - TIMIA Capital · • Financial Technology (Fintech) platform lowers ... Financing Landscape for Software Companies 4. Typical Investment ... Q3 2016 Q4 2016 Q1 2017

TIMIA CapitalTECHNOLOGY-ENABLED LENDING FOR GROWING SOFTWARE COMPANIES

TSXV TCA

Page 2: New IR Pitch - TIMIA Capital · • Financial Technology (Fintech) platform lowers ... Financing Landscape for Software Companies 4. Typical Investment ... Q3 2016 Q4 2016 Q1 2017

DisclaimerNot 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 2017 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

Page 3: New IR Pitch - TIMIA Capital · • Financial Technology (Fintech) platform lowers ... Financing Landscape for Software Companies 4. Typical Investment ... Q3 2016 Q4 2016 Q1 2017

Investment Highlights

3

Delivering Returns

• TIMIA is a cashflow focused specialty lender

• Focused on small to medium private software

companies

• Experienced tech VC management team

• 9 investments since 2015 inception, 3

successful early exits, >23% portfolio IRR

• Strong portfolio, all payments made on time.

• TIMIA takes security on the cashflow of its

portfolio investment companies versus

traditional finance companies securing assets

alone

Creating Global Platform

• Financial Technology (Fintech) platform lowers

risk and makes smaller loans more economic

• Innovative capital structure both accesses low

cost capital while monetizing portfolio to

improve shareholder return

• Blockchain Application - incorporating

Blockchain to reduce operational costs,

globalize investor access, de-risk investments,

and create new products

Page 4: New IR Pitch - TIMIA Capital · • Financial Technology (Fintech) platform lowers ... Financing Landscape for Software Companies 4. Typical Investment ... Q3 2016 Q4 2016 Q1 2017

TIMIA is Pioneering an Underserved Sector

TRADITIONAL BANKS, PRIVATE EQUITY

VENTURE

CAPITALSTRUGGLING

ANGEL INVESTORS / EQUITY

100

10

1

Re

ve

nu

e (

$M

)

0 20 100Annual Revenue Growth (%)

Financing Landscape for Software Companies

4

Page 5: New IR Pitch - TIMIA Capital · • Financial Technology (Fintech) platform lowers ... Financing Landscape for Software Companies 4. Typical Investment ... Q3 2016 Q4 2016 Q1 2017

Typical Investment

Recurring revenue software companies provide strong security

In addition, the average company we invest

in is growing revenues of at least 25% YoY.

REVENUE STREAM = NOW WORTH $17 MILLION

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6

$3M

$2M

$1M

5

Page 6: New IR Pitch - TIMIA Capital · • Financial Technology (Fintech) platform lowers ... Financing Landscape for Software Companies 4. Typical Investment ... Q3 2016 Q4 2016 Q1 2017

Multiple Income Streams Drive Revenue & Income Growth

Total

portfolio has

delivered

23% IRR

since 2015

SELECT INVESTMENTS

Plus! A strong pipeline of deals ready to fund

* Based on actual and current expected cash flows

Monthly Interest 20% per annum*

Transaction FeesUp to 2% of

transaction

Buyout PremiumsUp to 50% IRR

per annum

WarrantsUp to 3%

annual return

6

Page 7: New IR Pitch - TIMIA Capital · • Financial Technology (Fintech) platform lowers ... Financing Landscape for Software Companies 4. Typical Investment ... Q3 2016 Q4 2016 Q1 2017

Selling Participations : Driving Shareholder Value

INVESTED CAPITAL

Balance Sheet

PARTICIPATION CAPITAL

Currently 31% of Capital

Target ~ 70% of Portfolio

PORTFOLIOINVESTMENTS

HIGH NET WORTH & INSTITUTIONAL

INVESTORS

• Invest Capital Directly

• Earn Share of Cashflow

• Monthly payments

• transaction fees

• Buyouts / warrants

• Advance funding

• Receive performance data

• Take security

YIELD DIFFERENTIAL RETAINED

7

Page 8: New IR Pitch - TIMIA Capital · • Financial Technology (Fintech) platform lowers ... Financing Landscape for Software Companies 4. Typical Investment ... Q3 2016 Q4 2016 Q1 2017

Strong Returns

As at March 31, 2018

• 23% IRR per annum since inception (August, 2015)

• 9 deals — successfully exited from three

• $9.4M invested, $6M currently outstanding

• >$5.6M collected in payments over 2.5 years

• $11.1M to be collected in payments over next 5 years

• 7 in British Columbia, 2 in Ontario

• $4M in available cash to invest

• International expansion underway through Blockchain technology adoption and new lending platform

8

Page 9: New IR Pitch - TIMIA Capital · • Financial Technology (Fintech) platform lowers ... Financing Landscape for Software Companies 4. Typical Investment ... Q3 2016 Q4 2016 Q1 2017

Blockchain Will Transform our Business

Globalization

Expand geographic deal scope

while maintaining trust

Exploit variances in local

interest rates

Access global investors in

participation finance model

Bring Yield to the Crypto-

Currency Market

Operational Cost Reduction

Improve Risk Management

Smart wallets facilitate low

cost transfers and F/X

Smart contracts facilitate

payment automation / escrows

Elimination of Intermediaries

Real time transactional data

drives payments

Reduce due diligence on

follow-on tranches by using

smart contracts

New Product Offerings

Tokenization can provide

liquidity

Broader range of products

possible given automation i.e.

daily payments

Utilize automated escrows for

more routine milestone based

disbursements

Access imperfect lending

markets remotely

Re-structure TIMIA to focus on

high margin / strategic activities

Compliance

Regulatory / X-Border

9

Page 10: New IR Pitch - TIMIA Capital · • Financial Technology (Fintech) platform lowers ... Financing Landscape for Software Companies 4. Typical Investment ... Q3 2016 Q4 2016 Q1 2017

2020

Expand beyond North

America

$100 M +

Focus on core value

components (risk

management)

EXISTING

Speciality Lending

Canadian Software

Companies

>23% Annual IRR

Managing Risk

Controlling Costs

Delivering Cash to

Investors

SMART CONTRACT 1 SMART CONTRACT 2

Blockchain Roadmap

PORTFOLIO

Phase 1 - Q3 2018

Smart Contract 1 in Place

Crypto-Currency as a

Medium of Exchange

Automated Payments

Regulatory Compliant

Tokenized Asset

Canadian Portfolio

10

Phase 2 - Q3 2019

Smart Contract 2 in Place

Automated Payments

Offering Crypto Loans

New Product Offerings

North American Portfolio

INVESTORS

Page 11: New IR Pitch - TIMIA Capital · • Financial Technology (Fintech) platform lowers ... Financing Landscape for Software Companies 4. Typical Investment ... Q3 2016 Q4 2016 Q1 2017

Financial Results –FY2017

11

• Record annual revenue of $1,040,895, up 69% over prior year

• Assets under management grew over 80% compared with the

prior year.

• A significant increase in net income resulted in a reduced net loss

of $197,620 compared with a net loss of $424, 951 in the prior

year

• Adjusted EBITDA* increased $180,919 to $138,852 compared

with an Adjusted EBITDA loss of $42,067 for the prior year period

• Net loss per share of $0.01 compared with a $0.02 loss per share

in the prior year

Net Income

$-

$100,000

$200,000

$300,000

$400,000

Q1 2016Q2 2016

Q3 2016Q4 2016

Q1 2017Q2 2017

Q3 2017Q4 2017

Revenue Growth

Revenue Gains

$(250,000)

$(200,000)

$(150,000)

$(100,000)

$(50,000)

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

$(40,000)

$(20,000)

$-

$20,000

$40,000

$60,000

$80,000

$100,000

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Adjusted EBITDA

Page 12: New IR Pitch - TIMIA Capital · • Financial Technology (Fintech) platform lowers ... Financing Landscape for Software Companies 4. Typical Investment ... Q3 2016 Q4 2016 Q1 2017

Experienced Management TeamMike Walkinshaw Chief Executive Officer

Greg SmithChief Investment Officer

Darren SeedVP – Capital Markets

Andrew AboucharChief Credit Officer

Stephanie AndrewVP – Finance

• Mike joined the company

as the CEO in August

2015

• Co-Founder and

Managing Partner of

Fronterra Capital

• Managing Partner, CFO

at Chrysalix Energy

• Greg joined TIMIA as the

CIO in September 2015

• Co-Founder and

Managing Partner of

Espresso Capital

• Business Development

Bank of Canada’s

(“BDC”) Technology

Seed Investment Group

• 20-plus years of experience in

Canada’s venture capital and

private equity industry

• Cofounder and partner in Tech

Capital Partners Inc.

• Founder of TCP Property Inc.

• Accountant at PwC

• Investment manager at

Working Ventures

• Advisor to the Government of

Canada and Province of

Ontario

• Board of Ontario Centres of

Excellence

• Over 20 years of capital markets

experience across various

exchanges and industries

• Darren joined TIMIA as the Vice

President, Capital Markets &

Communications (VPCMC) in

January 2018

• VPCMC of Avigilon Corporation

• President of Incite Capital

Markets Inc

• Raised in excess of $750 million

for previous companies.

• VP Finance, Espresso Capital

• Founding Partner of the

Women’s Equity Lab (WEL)

• Executive Director of the Capital

Investment Network (CIN

• MSc in Molecular Biology and

Medical Genetics

• MBA at the Schulich School of

Business

• CFA charter holder

12

Page 13: New IR Pitch - TIMIA Capital · • Financial Technology (Fintech) platform lowers ... Financing Landscape for Software Companies 4. Typical Investment ... Q3 2016 Q4 2016 Q1 2017

Experienced Board

13

Thealzel Lee Director

James PrattDirector

• Vancouver Angel Technology Network

(VANTEC)

• Vancouver chapter of the Keiretsu

Forum

• National Angel Capital Organization

(Canada) and the Angel Capital

Association (U.S.)

• Founder of two angel seed funds: Nelsa

Investment (VCC) Inc. and VANTEC

Entrepreneurs Fund (VCC) Inc.

• Co-Owner of Prosnack Natural Foods,

which makes Elevate Me energy bars

and other healthy lifestyle food

products

• CEO, Sepp’s Gourmet Foods

• Active angel investor

• Director of the Food Innovation Centre

of BC

• Chairman of the Functional Foods

Alberta Centre of Excellence

• David Demers was the CEO and

Co-Founder of Westport Fuel

Systems (TSX:WPT) for over 20

years

• Extensive TSX and board

experience

• Strong knowledge of the

technology sector

David DemersDirector

Howard AtkinsonDirector

• Howard Atkinson has over 30

years of investment management

experience

• Published four books on Exchange

Traded Funds

• Former President of Horizons

ETFs Management (Canada)

• Member of the S&P/TSX Canada

Index Advisory Panel

Mike VolkerChairman

• Mike is a Co-Founder of TIMIA (formally

GreenAngel Energy)

• For over 30 years, Mike has been active

in the development of new high

technology ventures

• Director of Simon Fraser University’s

Innovation Office

• Vancouver Angel Network

• New Ventures BC business plan

competition

Page 14: New IR Pitch - TIMIA Capital · • Financial Technology (Fintech) platform lowers ... Financing Landscape for Software Companies 4. Typical Investment ... Q3 2016 Q4 2016 Q1 2017

Investment Highlights

14

Delivering Returns

• TIMIA is a cashflow focused specialty lender

• Focused on small to medium private software

companies

• Experienced tech VC management team

• 9 investments since 2015 inception, 3

successful early exits, >23% portfolio IRR

• Strong portfolio, all payments made on time.

• TIMIA takes security on the cashflow of its

portfolio investment companies versus

traditional finance companies securing assets

alone

Creating Global Platform

• Financial Technology (Fintech) platform lowers

risk and makes smaller loans more economic

• Innovative capital structure both accesses low

cost capital while monetizing portfolio to

improve shareholder return

• Blockchain Application - incorporating

Blockchain to reduce operational costs,

globalize investor access, de-risk investments,

and create new products

Page 15: New IR Pitch - TIMIA Capital · • Financial Technology (Fintech) platform lowers ... Financing Landscape for Software Companies 4. Typical Investment ... Q3 2016 Q4 2016 Q1 2017

Capital Structure

• Shares Outstanding

– ~34.5 MILLION TOTAL OUTSTANDING

– ~50 MILLION FULLY DILUTED

• Market Capitalization ~$6 million

• Warrants outstanding -10,341,281 with weighted average @ $0.18

• Options outstanding - 3,535,000 with weighted average @ $0.08

• $2,051,000 convertible debentures @$0.14 convertible into 14,650,000

common shares

15

Page 16: New IR Pitch - TIMIA Capital · • Financial Technology (Fintech) platform lowers ... Financing Landscape for Software Companies 4. Typical Investment ... Q3 2016 Q4 2016 Q1 2017

TIMIA CapitalFRICTIONLESS FINANCE FOR GROWING SOFTWARE COMPANIES

TSXV TCA