Book value

Flow Capital Announces Prepayment and Book Value of 9%

TORONTO, May 02, 2022 (GLOBE NEWSWIRE) — Flow Capital Corp. (TSXV: FW) (“Flow Capital”) announced today that an investment made last year in a US-based software company has been repaid. The early exit is expected to generate a net gain of approximately US$1.7M (~CA$2.2M) in both early redemption fees and success-based exit fees. This represents an increase in book value of approximately $0.07 per share, a gain of more than 9% from the reported book value of approximately $0.745/share at the end of 2021.

“A prepayment like this is a reflection of the exponential growth that technology start-ups can experience with the help of our flexible growth capital. This result is also a testament to the strength of our origination capabilities and our ability to identify and fund high-yielding, high-growth companies. Finally, these types of investment successes highlight the creation of exceptional shareholder value that our business model can generate,” said Alex Baluta , CEO of Flow Capital.

Repaid principal along with realized gains will be reinvested in new, high-quality companies, seeking interest income and warrant-based equity gains, creating more value for Flow shareholders.

Flow Capital invites growing technology companies looking for lightweight, founder-friendly growth capital to apply for funding directly on their website at www.flowcap.com/apply.

About the feed Capital

Flow Capital Corp. is a diversified alternative asset investor and advisor specializing in providing low-dilution capital to emerging growth companies. For more information about Flow Capital, please visit www.flowcap.com.

For more information, please contact:

Flux Capital Corp.
Alex Baluta
Chief executive officer
[email protected]

1 Adelaide Street East, Suite 3002,
Box 171,
Toronto, Ontario M5C 2V9

Forward-looking information and statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities laws and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or of the current condition, but rather represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature , are inherently uncertain. and outside the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “anticipates”, “expects” or “does not expect”, “is expected”, ” budget”, “planned”. “, “estimates”, “plans”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and phrases or may contain statements that certain actions , events or results “may”, “could”, “would”, “might” or “will”, “will”, “will”, “will occur” or “will be achieved”. Forward-looking information contained herein may include, but not limited to, information regarding: forecast financial performance; including the Company’s view of the current and future performance of its portfolio, expenditures and operations; anticipated cash requirements and funding requirements anticipated sources of funding; future growth plans; royalty acquisition goals and proposed or completed royalty transactions; estimated operating costs; estimated market drivers and demand; outlook and business strategy; anticipated trends and challenges in the Company’s business and the markets in which it operates; the amount and timing of the payment of dividends by the Company; and the Company’s financial condition. By identifying such information and statements in this manner, the Company cautions the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements of the Company. be materially different from those expressed or implied by such information and statements.

An investment in securities of the Company is speculative and subject to a number of risks, including, without limitation, risks relating to: the need for additional financing; the relative speculative and illiquid nature of an investment in the Company; the volatility of the Company’s share price; the Company’s limited operating history; the Company’s ability to generate sufficient revenue; the Company’s ability to manage future growth; the limited diversification of the Company’s existing investments; the Company’s ability to negotiate additional royalty purchases from new licensees; the Company’s dependence on the operations, assets and financial health of its investees; the Company’s limited ability to exercise control or direction over investees; potential defaults of beneficiary companies and the unsecured nature of the Company’s investments; the Company’s ability to enforce any default by an issuing company; competition with other investment entities; tax matters, including the potential impact of the Foreign Account Tax Compliance Act on the Company; the potential impact of the Company’s classification as a passive foreign investment company (“PFIC”); the Company’s ability to pay dividends in the future and the timing and amount of such dividends; dependence on key personnel, in particular the founders of the Company; dilution of shareholder interest by future financings; and general economic and political conditions; as well as the risks discussed in the Corporation’s joint management information circular dated May 2, 2018 and the risks discussed herein. Although the Company has attempted for identify important factors that could cause real results for to differ materially from those content in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Assumptions regarding the performance of the Canadian and U.S. economies over the next 24 months and how this will affect the Company’s business and its ability to identify and pursue new opportunities with new corporate issuers are important factors that the Company has taken into account when establishing its priorities and strategic objectives, and its business outlook.

Key assumptions include, but are not limited to: assumptions that the Canadian and US economies relevant to the Company’s investment focus will remain relatively stable over the next 12 to 24 months; that interest rates will not rise dramatically over the next 12 to 24 months; that the Company’s existing interests will continue to pay royalties to the Company as and when required; that the operations of the businesses held by the Company will not experience material adverse results; that the Company will continue to develop its portfolio in a manner similar to what has already been established; that tax rates and tax laws will not change materially in Canada and the United States; that more small and medium-sized private and public enterprises will continue to need access to other sources of capital; that the Company will be able to raise equity and/or debt financing on acceptable terms; and that the Company will have sufficient free cash flow to pay dividends. The Company has also assumed that access to capital markets will remain relatively stable, that capital markets will operate with normal levels of volatility, and that the Canadian dollar will not experience high volatility relative to the US dollar. To determine economic growth forecasts, the Company primarily takes into account historical economic data provided by the Canadian and US governments and their agencies. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurances or warranties can be assured that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements.

The forward-looking information and forward-looking statements contained in this PRESS RELEASE are made as of the date of this PRESS RELEASE, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or mentioned herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.

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 release.