~Montfort's TIMIA Capital and Pivot Financial book record origination and distribution of private credit financing facilities in the first half of 2022~
Montfort Capital Corporation ("Montfort" or the "Company") (TSXV: MONT) (OTCQB: MONTF), a leading innovator of technology in private credit, today provided an update on its consolidated loan book activity for the first half of 2022. Montfort is made up of two operating entities: TIMIA Capital (TIMIA) which offers revenue-based tech loans to fast growing, business-to-business Software-as-a-Service (or SaaS) businesses in North America and Pivot Financial (Pivot) which specializes in asset-based private credit targeting mid-market borrowers in Canada . The Company deploys funds on behalf of limited partnerships, institutions, retail investors, high net worth individuals, its management team and shareholders. The Company acquired Pivot Financial in September 2021 .
For the first half of 2022, Montfort's consolidated loan book activity included the following:
- $54 million disbursed for both new term loans, revolving lines of credit, and follow-ons to existing term loans, representing a 6-fold increase over same period last year,
- $40 million in loan maturities and payouts.
During the same period, Montfort reports that TIMIA's loan origination multiple, a method of measuring the efficiency of closing loan transactions with the cost to underwrite and manage the new loans, has increased to its highest level since the company was founded in 2015. This record level of efficiency is an indication of the performance of the underlying loan origination platform, driving an increase in loan origination transactions while keeping costs in check.
"TIMIA and Pivot are experiencing substantial organic growth in their respective private credit markets," said Mike Walkinshaw , CEO of TIMIA. "Our investment in both our loan origination and management platform and our people is paying off as we continue to see an acceleration in deal generation. TIMIA has generated more investment transactions in the first six months of 2022 than all of 2021. Pivot has also continued to grow organically adding over $33 million of asset-based private loans in the first half of 2022. As we execute our growth strategy we are working diligently to close two previously announced acquisitions including Brightpath Capital, one of Canada's leading private providers of residential mortgages focused on Ontario and British Columbia ."
The Company also reports that eight previously reported non-dilutive financing facilities for growing US-based SaaS companies have been paid out. The exit of these eight financings are expected to return $18.6 million of capital and generate, in addition to interest earned, a combined gain of approximately $650,000 which will positively impact the Company's consolidated results. Pivot recorded $21.6 million in loan maturities.
The previously announced proposed acquisition of Brightpath Capital and a specialty finance company are currently subject to non-binding letters of intent. Since signing the non-binding letters of intent, the Company has undertaken due diligence and has proceeded with negotiation of definitive transaction agreements, which are expected to close in July for Brightpathand in the near term for the specialty finance company.
Montfort manages a diversified family of specialized private credit brands that utilize focused strategies and experienced management teams combined with advanced technology to improve fee related performance. Montfort facilitates transparency for all of its investors through public company reporting. For further information, please visit www.montfortcapital.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.
Certain information and statements in this news release contain and constitute forward-looking information or forward-looking statements as defined under applicable securities laws (collectively, "forward-looking statements"). Forward-looking statements normally contain words like 'believe', 'expect', 'anticipate', 'plan', 'intend', 'continue', 'estimate', 'may', 'will', 'should', 'ongoing' and similar expressions, and within this news release include any statements (express or implied) respecting the future growth of the company, the Company's future financial performance and the completion of the Company's previously announced acquisitions.
Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions and other factors that management currently believes are relevant, reasonable and appropriate in the circumstances, including, without limitation, the following assumptions: that the Company and its investee companies are able to meet their respective future objectives and priorities, assumptions concerning general economic growth and the absence of unforeseen changes in the legislative and regulatory framework for the Company; assumptions regarding the Company's ability to complete its previously announced acquisitions on terms favourable to the Company.
Although management believes that the forward-looking statements are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to Montfort's business. Material risks and uncertainties applicable to the forward-looking statements set out herein include, but are not limited to: the conditions of the proposed acquisitions not being satisfied; that the Company's proposed acquisitions will not be completed; that the targets of the Company's proposed acquisitions will not achieve their growth and profitability objectives; the Company having insufficient financial resources to achieve complete the proposed transaction and achieve its objectives; intense competition in all aspects of business; reliance on limited management resources; general economic risks; new laws and regulations and risk of litigation. Although Montfort has attempted to identify factors that may cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, predicted, estimated or intended. Also, many of the factors are beyond the control of Montfort . Accordingly, readers should not place undue reliance on forward-looking statements. Montfort undertakes no obligation to reissue or update any forward-looking statements as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements contained in this news release are qualified by this cautionary statement.
SOURCE Montfort Capital Corporation
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