(All figures in Canadian dollars)
TORONTO, Oct. 17,
2024 /CNW/ - Montfort Capital Corp.
("Montfort" or the "Company") (TSXV: MONT), a trusted provider
of focused private credit strategies for institutional investors,
family wealth offices, and wealth managers, is pleased to announce
it has entered into a securities purchase agreement (the
"Agreement") with an affiliate of Round13 Capital (the
"Buyer"), an arm's length third party to the Company,
pursuant to which Montfort agrees
to sell (the "Transaction") all of its right, title and
interest to the entities comprising the TIMIA Capital business
unit, which together provide a technology-based lending platform
that provides debt capital to B2B recurring revenue technology
businesses in North America (the
"TIMIA Group"), and Montfort's equity interests in the TIMIA Group
investment funds.
The total value of the Transaction includes an all-cash purchase
price of $4.5 million, subject to
certain purchase price adjustments, plus the prepayment of
$2 million in principal indebtedness
to Pivot Financial I Limited Partnership ("Pivot"), an affiliate of
Montfort, as creditor to TIMIA
Capital Holdings Limited Partnership, an entity under the TIMIA
Group.
Ken Thomson, CEO of Montfort Capital, said: "We are very pleased
to announce this transaction, which represents an evolution of our
strategy. After successfully growing the business to its present
size, TIMIA will now benefit from becoming part of Round13's
portfolio which focuses on technology investments within North
America. Montfort remains
focused on its other lending units that provide scalable and
focused private credit opportunities."
Brahm Klar, Managing Partner of
Round13, said: "As a leading venture debt platform
supporting a long-underserved segment of the Canadian private
credit market, TIMIA is an exceptional complement to our core
equity funds. This deal will enable Round13 to offer Canadian
entrepreneurs a full suite of expanded financing options to grow
their businesses and is aligned with our vision of building
enduring, long-term partnerships with our investors and portfolio
companies."
The Transaction remains subject to certain customary closing
conditions. The Transaction is not conditional on financing. The
Transaction is expected to close by the end of the month.
About Montfort Capital Corp.
Montfort is a trusted provider
of focused private credit strategies for institutional investors,
family offices, and wealth managers. Our experienced
management teams employ focused strategies to drive superior
risk-adjusted investment returns. Montfort's business lines include:
- Brightpath Capital, one of Canada's leading providers of alternative
residential mortgages.
- Langhaus Financial, provides insurance policy-backed
lending solutions to high-net-worth individuals and entrepreneurs
in Canada.
- Nuvo Financial, is focused on providing net asset value
(NAV) loans to small and mid-sized investment funds in Canada.
- Pivot Financial which specializes in asset-backed
private credit targeting mid-market borrowers in Canada.
For further information, please visit
www.montfortcapital.com.
About Round13 Capital
Founded in 2013, Round13 Capital is a leading venture and growth
equity investment platform based in Toronto, Canada. The firm invests in
high-potential companies across a range of sectors, with a focus on
supporting their growth and development over the long term.
Round13's team of experienced investors and operators bring a
wealth of expertise and insight to every investment, helping
portfolio companies to realize their full potential. Round13 is
dedicated to creating long-term value for its investors and the
companies it supports. For further information, please
visit www.round13.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 Statements
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)
related to the closing of the Transaction and the timing thereof,
the satisfaction of all conditions precedent to the closing of the
Transaction and any benefit that may be derived by the Company from
the Transaction, including, without limitation, any material
benefit to the working capital or financial position of the Company
as a result of the Transaction.
There is no guarantee the Transaction will be completed as
contemplated or at all, and the forward-looking statements
contained herein are based on expectations, assumptions and other
factors that management currently believes are relevant as of the
date hereof, reasonable and appropriate in the circumstances,
including, without limitation, assumptions with respect to the
financial position and working capital of the Company and TIMIA
Capital, the ability of the Company to satisfy the conditions
precedent under the Agreement, and the conditions of the financial
markets and the private lending markets generally, among
others.
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: risks
related to the disposition of an operating business by the Company,
risks that the benefits derived from the Transaction may not be as
expected or that the Company may not see any benefit from the
Transaction, risks that each party to the Agreement may not satisfy
its obligations or covenants, risks that the Company may be subject
to litigation as a result of the Transaction including allegations
of misrepresentation or breach of conditions or covenants, as well
as the risk factors discussed in the Company's MD&A, and other
public disclosure filings which are available through SEDAR+ at
www.sedarplus.ca. 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.
ON BEHALF OF THE BOARD
Ken Thomson
Director and CEO
SOURCE Montfort Capital Corp.