~Montfort's TIMIA Capital and Pivot Financial
book record origination and distribution of private credit
financing facilities in the first half of 2022~
VANCOUVER, BC, July 18,
2022 /CNW/ - 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.
About Montfort Capital
Corporation
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.
Forward-Looking Information
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