Announcements - Portfolio News

December 5, 2018

Flow Capital Announces USD $1.06 Million Buyout of Frequentz Investment

Flow Capital Announces USD $1.06 Million Buyout of Frequentz Investment

TORONTO, December 5, 2018 – Flow Capital Corp. (“Flow Capital” and “Flow”) today announced that its investment in Frequentz, Inc. (“Frequentz”) has been bought-out for a price of USD $1,062,500, generating a 1.54X return on the USD $850,000 investment made in June 2017.  It is the third profitable exit from Flow Capital’s portfolio in 2018.  The other 2018 exits were Fixt (2.2X) and Boardwalktech (2.2X).

“The value proposition of Flow’s growth capital was demonstrated in our Frequentz investment. Our flexible capital structure provided a bridge to the acquisition of Frequentz’s assets by rfXcel,” stated Robb McLarty, Chief Investment Officer of Flow Capital. “With approximately CDN $9 million in capital available to deploy, we are very well positioned for growth in 2019.”

About Flow Capital Corp.

Based in Toronto, Flow Capital Corp. is a diversified alternative asset investor and advisor, operating two divisions: an investment operation providing revenue-linked capital to emerging growth businesses, and an institutional advisory sales platform providing pension funds, charities and endowment clients with access to leading institutional money managers from around the world. Learn more at www.flowcap.com.

For further information, please contact:

Flow Capital Corp.

Robb McLarty
Chief Investment Officer
robb@flowcap.com

Phone: (416) 777-0383

December 3, 2018

Flow Capital Congratulates Dionymed on its CSE Listing

Flow Capital Congratulates Dionymed on its CSE Listing

TORONTO, December 3, 2018 – Flow Capital Corp. (“Flow Capital” and “Flow”) wishes to congratulate DionyMed Brands Inc. (“DionyMed”) on its approximately CAD $35,000,000 equity financing and successful listing on the Canadian Securities Exchange (“CSE”).  DionyMed, in which Flow Capital invested in March 2018, commenced trading on the CSE on November 29, 2018 under the ticker symbol DYME.

In addition to continuing to hold a revenue royalty of CAD $1,000,000 with DionyMed, Flow Capital holds 190,000 common share purchase warrants of DionyMed, at a strike price of CAD $1.50.

Currently based in California and Oregon, DionyMed is a rapidly-growing, multi-state cannabis brands and distribution platform, supporting cultivators, manufacturers and award-winning brands in the medical and adult-use cannabis markets. DionyMed sells branded products in every category from flower to vape cartridges, concentrates and edibles. DionyMed serves more than 700 dispensaries and completes over 40,000 Direct-To-Consumer deliveries each month with its growing portfolio of products and brands.

“Dionymed is the prototypical Flow Capital portfolio company: rapidly accreting the value of its equity, led by seasoned and invested management, with a clear value proposition, and operating in a large and high growth market,” stated Robb McLarty, Chief Investment Officer and Acting Chief Executive Officer of Flow.  “We will continue to execute on opportunities like Dionymed, in exciting markets like cannabis, in both the United States and in Canada, in order to continue to fulfill our mission of building shareholder value by contracting for recurring, high-yield revenue royalties, 2X buyouts and further upside from warrants.”

About Flow Capital

Based in Toronto, Flow Capital Corp. is a diversified alternative asset investor and advisor, operating two divisions: an investment operation providing revenue-linked capital to emerging growth businesses, and an institutional advisory sales platform providing pension funds, charities and endowment clients with access to leading institutional money managers from around the world. Learn more at www.flowcap.com.

For further information, please contact:

Flow Capital Corp.

Robb McLarty
Chief Executive Officer (Acting)
robb@flowcap.com

Phone: (416) 777-0383

November 15, 2018

Flow Capital Announces Follow-on Investment in Stability Healthcare

Flow Capital Announces Follow-on Investment in Stability Healthcare

TORONTO, Ontario, November 13, 2018 Flow Capital Corp. (TSXV: FW) (“Flow” or the “Company”) announces that it has completed a follow-on investment in Stability Healthcare Inc. (“Stability”), providing USD $425,000 in growth capital. Similar to Flow’s other royalty agreements, the financial terms include an indefinite term, monthly payments, and a buyout provision. In addition, Stability has issued to Flow Capital five-year warrants to purchase approximately 1% of the company.

Based in Los Angeles, California, Stability uses an online platform to match the supply of travel nurses with healthcare facilities that are in need of temporary nurses, significantly reducing placement times. The company has changed the way that the industry has historically operated by creating transparency in selecting travel assignments, and by releasing as much information upfront to nurses including compensation, travel expenses and placement facility details.  For the past four years, Stability has been ranked on the Inc. 5000 fastest growing private companies list, making the top 500 list in 2015, 2016 and 2017.

“We are pleased to continue our support of Stability’s growth as the healthcare industry digitizes and as the nursing workforce shifts from Boomers to Millennials,” said Robb McLarty, Acting CEO of Flow Capital. “Our flexible, revenue-linked growth capital is helping Stability to achieve its goals, while offering a unique blend of cash flow yield and upside to Flow Capital and its shareholders.”

About Flow Capital

Based in Toronto, Flow Capital Corp. is a diversified alternative asset investor and advisor, operating two divisions: an investment operation providing revenue-linked capital to emerging growth businesses, and an institutional advisory sales platform providing pension funds, charities and endowment clients with access to leading institutional money managers from around the world. Learn more at www.flowcap.com.

For further information, please contact:

Flow Capital Corp.

Robb McLarty
Chief Executive Officer (Acting)
robb@flowcap.com

Phone: (416) 777-0383

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

 

September 24, 2018

Flow Capital Congratulates Factor75 and Stability Healthcare

Flow Capital Congratulates Factor75 and Stability Healthcare

TORONTO, September 24, 2018 – Flow Capital Corp. (“Flow Capital” and “Flow”) congratulates Factor75 and Stability Healthcare for being named to the Inc. Magazine list of the 5000 fastest growing private companies in America.

Factor75 ranked 264th, with a three-year revenue growth rate of 1,841% and 2017 revenues of USD $9.9 million. Stability Healthcare ranked 1,242nd, with a three-year revenue growth rate of 390% and 2017 revenues of USD $19.4 million.

Additionally, Stability Healthcare has been recognized as the 4th fastest growing staffing firm in the United States by Staffing Industry Analysts (SIA), with a five-year compound annual revenue growth rate of 107%.

“Congratulations to Factor75 and Stability Healthcare for once again being recognized for their high growth rates, which testifies to the value proposition that each company delivers to its customers,” said Robb McLarty, Chief Investment Officer and Acting Chief Executive Officer of Flow Capital. “This news reiterates one of the strengths of Flow Capital’s business model: our revenues grow when those of our portfolio companies grow.”

About Flow Capital

Based in Toronto, Flow Capital Corp. is a diversified alternative asset investor and advisor, operating two divisions: an investment operation providing revenue-linked capital to emerging growth businesses, and an institutional advisory sales platform providing pension funds, charities and endowment clients with access to leading institutional money managers from around the world. Learn more at www.flowcap.com.

For further information, please contact:

Flow Capital Corp.

Robb McLarty
Chief Executive Officer (Acting)
robb@flowcap.com

Phone: (416) 777-0383

1 Adelaide Street East, Suite 3002,

PO Box 171,

Toronto, Ontario M5C 2V9

September 18, 2018

Flow Capital Announces Acquisition of Darwin Portfolio

Flow Capital Announces Acquisition of Darwin Portfolio

TORONTO, September 18, 2018 – Flow Capital Corp. (“Flow Capital” and “Flow”) is pleased to announce that it has acquired the portfolio of joint venture partner Darwin Strategic Royalty Corp. (“Darwin”).

The portfolio is comprised of Darwin’s share of eight existing Flow Capital royalty investments, including Expert Homes, eScribe, Hybrid Financial, Solar Brokers Canada, Dionymed Holdings, Factor75, Medworxs and Stability Healthcare.  The portfolio was acquired for a price equal to approximately CAD $1.3 million, which is the original cost of the Darwin portfolio.

Concurrent with the acquisition, the joint venture between Flow Capital and Darwin was concluded.  The joint venture agreement was signed in October 2016 and was due to expire in October 2018.

“I would like to thank Darwin’s principals, Louis Desmarais and Brad Romoff, for their work in making the joint venture a success, which allowed us to scale our portfolio across a broader number of investment opportunities while providing sufficient growth capital to help our portfolio companies achieve their growth objectives,” said Robb McLarty, Acting Chief Executive Officer of Flow.  “Flow Capital is positioned for continued growth in its recurring revenues from royalties and interest, and non-recurring cash inflows from royalty buyouts and realizations of equity positions.”

Inclusive of the portfolio of five royalties acquired from Foregrowth, announced on August 8th 2018, this acquisition increases Flow Capital’s exposure to investments made since 2016 by approximately CAD $2.0 million. Similar to Flow’s other royalty agreements, the financial terms of all acquired royalties include an indefinite term, monthly payments, and a buyout provision.  In addition, Flow Capital acquired from Darwin a warrant to purchase up to 20,000 common shares of DionyMed at a strike price of CAD $1.50 per share for a period of 5 years following the issuance date of the warrants.

About Flow Capital

Based in Toronto, Flow Capital Corp. is a diversified alternative asset investor and advisor, operating two divisions: an investment operation providing revenue-linked capital to emerging growth businesses, and an institutional advisory sales platform providing pension funds, charities and endowment clients with access to leading institutional money managers from around the world. Learn more at www.flowcap.com.

For further information, please contact:

Flow Capital Corp.

Robb McLarty
Chief Executive Officer (Acting)
robb@flowcap.com

Phone: (416) 777-0383

1 Adelaide Street East, Suite 3002,

PO Box 171,

Toronto, Ontario M5C 2V9

 

August 7, 2018

Flow Capital Congratulates Inner Spirit Holdings on its IPO

Flow Capital Congratulates Inner Spirit Holdings on its IPO

TORONTO, August 7, 2018 – Flow Capital Corp. (“Flow Capital” and “Flow”) wishes to congratulate Inner Spirit Holdings Ltd. (“Inner Spirit”) on its successful listing on the Canadian Securities Exchange (“CSE”). Inner Spirit’s common shares began trading effective at the market open on August 1, 2018 under the symbol ISH.

Inner Spirit is a Flow Capital portfolio company.  In January 2018, Flow Capital converted its royalty in WATCH IT! to common shares of Inner Spirit.  Following the completion of Inner Spirit’s IPO, Flow Capital owns approximately 8.36% of the outstanding common shares of Inner Spirit.

Inner Spirit is establishing a chain of recreational cannabis dispensaries under its Spirit Leaf brand. Supporting local entrepreneurs by applying its award-winning franchise and retail models, Inner Spirit has more than 100 franchise partnerships in place for Spirit Leaf locations across BC, Alberta and Saskatchewan. Inner Spirit also intends to operate corporate dispensaries in certain jurisdictions. Developing a diverse portfolio of quality and curated lifestyle cannabis products – including Spirit Leaf’s own locally sourced lines – Inner Spirit and its Spirit Leaf brand is positioned to be an iconic Canadian brand and the most trusted source for recreational cannabis.

“Flow Capital congratulates Darren Bondar and the team at Inner Spirit on becoming the first Canadian recreational cannabis retail company to complete an initial public offering,” stated Robb McLarty, Acting Chief Executive Officer of Flow.  “Inner Spirit’s success will be a meaningful contributor to increasing Flow’s net asset value.  We believe that the intrinsic value of our portfolio of royalty, debt and equity positions, less net debt, continues to be significantly greater than our market capitalization.”

About Flow Capital

Based in Toronto, Flow Capital Corp. is a diversified alternative asset investor and advisor, operating two divisions: an investment operation providing revenue-linked capital to emerging growth businesses, and an institutional advisory sales platform providing pension funds, charities and endowment clients with access to leading institutional money managers from around the world. Learn more at www.flowcap.com.

For further information, please contact:

 Flow Capital Corp.

Robb McLarty
Chief Executive Officer (Acting)
robb@flowcap.com

Phone: (416) 777-0383

1 Adelaide Street East, Suite 3002,

PO Box 171,

Toronto, Ontario M5C 2V9

July 25, 2018

Flow Capital Expands Its Investment In Solar Brokers

Flow Capital Expands Its Investment In Solar Brokers

TORONTO, July 24, 2018 – Flow Capital Corp. (“Flow Capital” and “Flow”) wishes to announce that it has increased its investment in Solar Brokers Canada Corp. (“Solar Brokers”) and its affiliate Green Lion Eco Group Corp. (“Green Lion”).

Solar Brokers, based in Toronto, Ontario, is one of Canada’s largest solar sales organizations. Solar Brokers has brokered the sale of over 30 megawatts of solar to homeowners in Ontario since 2012, selling through online and premium retail channel partners. Solar Brokers is redefining how Canadian consumers adopt residential solar. Green Lion is a project management and quality assurance firm that ensures that every Solar Brokers project is built to industry-leading standards.

Flow Capital will provide to the companies a $1 million secured line of credit, which will accelerate the installation of sold projects. In addition to the line of credit, Flow Capital has made a strategic investment to become a shareholder of Solar Brokers and Green Lion. Flow will also be providing financial and strategic advice to the companies and will have the right to a seat on the companies’ boards of directors. Interest on the line of credit is commensurate with Flow Capital’s existing royalty, and the facility may be repaid at any time without a buyout premium.

Solar Brokers CEO J.C. Awwad commented, “We are excited to be partnering with Flow Capital, and confident that this partnership will allow us to optimize our financial strategy to obtain the required capital to support our ongoing rapid growth.”

“Flow Capital offers emerging growth companies a strong value proposition – a broad set of capital solutions that can be tailor-made to unique circumstances, paired with the advice and involvement of our team and Board,” said Robb McLarty, Acting Chief Executive Officer of Flow. “We believe in Solar Brokers’ business model and potential for value creation, which is why we chose to expand our investment in the company. The partnership is particularly well-matched given our team’s track record of investing in this space, which includes multiple profitable exits at prior firms.”

About Flow Capital Corp.
Based in Toronto, Flow Capital Corp. is a diversified alternative asset investor and advisor, operating two divisions: an investment operation providing revenue-linked capital to emerging growth businesses, and an institutional advisory sales platform providing pension funds, charities and endowment clients with access to leading institutional money managers from around the world. Learn more at www.flowcap.com.

For further information, please contact:
Flow Capital Corp.
Robb McLarty
Chief Executive Officer (Acting)
robb@flowcap.com
Phone: (416) 777-0383

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

June 25, 2018

Flow Capital Exits Debt Investment in Boardwalktech

Flow Capital Exits Debt Investment in Boardwalktech

TORONTO, June 25, 2018 – Flow Capital Corp. (“Flow Capital” and “Flow”) wishes to announce that it has exited its debt investment in Boardwalktech Software Corp. (“Boardwalktech”), earning a 2.2X return in the six months since making its investment.  Boardwalktech commenced trading on the TSXV on June 11, 2018 under the ticker symbol BWLK.

In addition to the investment return described above, and pursuant to the advisory agreement between Flow Capital and Boardwalktech signed in December 2017, Flow Capital continues to hold 79,884 common shares and 319,540 common share purchase warrants of Boardwalktech.

Based in Cupertino, California and founded in 2005, Boardwalktech has developed a patented digital ledger technology that allows for multi-party collaboration and verification on a trusted, shared, secure, and private information cloud.  The Boardwalk Enterprise Blockchain data management platform allows rapid blockchain application development on many platforms using any user interface, supporting both on/off-chain “smart contract” business logic, integration with legacy systems and an easy method of connecting all participants.  Boardwalktech’s customers include twenty-three of the Fortune 500.

“Flow Capital’s unique value proposition is evident in our experience with Boardwalktech.  Our innovative form of growth capital fuels expansion in our portfolio companies and delivers excellent risk-adjusted returns to our shareholders.  In addition to investing capital, we invest our time and our expertise in order to help catalyze meaningful step-ups in portfolio company enterprise value, sharing in the upside through warrants and equity” stated Robb McLarty, Acting Chief Executive Officer of Flow.  “We will continue to execute on opportunities like Boardwalktech, from both the United States and Canada, in order to continue to fulfill our mission of building shareholder value.”

About Flow Capital Corp.

Based in Toronto, Flow Capital Corp. is a diversified alternative asset investor and advisor, operating two divisions: an investment operation providing revenue-linked capital to emerging growth businesses, and an institutional advisory sales platform providing pension funds, charities and endowment clients with access to leading institutional money managers from around the world. Learn more at www.flowcap.com.

For further information, please contact:

Flow Capital Corp.

Robb McLarty
Chief Executive Officer (Acting)
robb@flowcap.com

Phone: (416) 777-0383

1 Adelaide Street East, Suite 3002,

Toronto, Ontario M5C 2V9

June 21, 2018

Flow Capital Announces Binding Agreement to Sell Agnity Global Royalty to Universal mCloud

Flow Capital Announces Binding Agreement to Sell Agnity Global Royalty to Universal mCloud

TORONTO, June 21, 2018 – Flow Capital Corp. (“Flow Capital” and “Flow”) today announced that it has signed a binding agreement to sell its Royalty Agreement with Agnity Global (“Agnity”), an industry leader in LTE/4G/5G mobile IoT applications, to Universal mCloud Corp (TSX-V: MCLD) (OTCQB: MCLDF) (“mCloud”).

Pursuant to the sale, mCloud will pay Flow Capital $2M USD in cash and 1.5M in mCloud shares at close, and another 3.5M shares if certain milestones are met.

“We are excited to be shareholders in mCloud, given the company’s proven team and track record, and the global market opportunity that it is attacking. We’re also very pleased to be participating in Agnity’s continued growth through mCloud. This deal is an example of Flow Capital’s strategy of leveraging our upside exposure to benefit from the success of our portfolio companies,” said Robb McLarty, Acting Chief Executive Officer of Flow Capital.

For mCloud, this transaction extends the company’s capacity to reach all parts of North America, Asia, and Europe and solidifies its position as the eminent provider of IoT asset management solutions for smart buildings, wind, and power utility providers.

“mCloud’s AssetCare platform is now connected to over 15,000 assets around the world and Agnity’s mobile capabilities are already being applied to our AI and Analytics offerings in the field, empowering field workers to achieve successful outcomes,” said Russel McMeekin, mCloud President and CEO. “This transaction will allow mCloud to offer enhanced IoT capabilities to our customers, such as blockchain-based mobile security, while simultaneously doubling our high-margin recurring revenue base and positioning mCloud for profitability in the near term.”

The Binding Agreement is subject to customary regulatory approval and a break up fee.

About Flow Capital Corp.

Based in Toronto, Flow Capital Corp. is a diversified alternative asset investor and advisor, operating two divisions: an investment operation providing revenue-linked capital to emerging growth businesses, and an institutional advisory sales platform providing pension funds, charities and endowment clients with access to leading institutional money managers from around the world. Learn more at www.flowcap.com.

About Universal mCloud Corp.

Universal mCloud Corp. is headquartered in Vancouver, BC with technology and operations centers in San Francisco, CA and Bristol, PA. mCloud is an IoT connected asset care cloud solution company utilizing connected IoT devices, leading deep energy analytics, secure mobile and 3D technologies that rally all asset stakeholders around an Asset-Circle-of-Care™, providing complete real-time and historical data coupled with guidance and advice based on deep analytics and diagnostics resulting in optimal performance and care of critical equipment. It’s all about the asset. The powerful and secure AssetCare™ environment is accessible everywhere, 24/7 through standard mobile devices, ruggedized headsets, and web browsers. For more information, visit www.mCloudCorp.com.

For further information, please contact:

Flow Capital Corp.

Robb McLarty
Chief Executive Officer (Acting)
robb@flowcap.com

Phone: (416) 777-0383

1 Adelaide Street East, Suite 3002,

Toronto, Ontario M5C 2V9

 

Universal mCloud Corp.

Madelin Daviau

NATIONAL | Equicom

T: 416-848-9833

mdaviau@national.ca

 

Russ McMeekin

Chief Executive Officer

Universal mCloud Corp.

T: 415-635-3500

June 18, 2018

Flow Capital Congratulates Boardwalktech on its TSXV listing

Flow Capital Congratulates Boardwalktech on its TSXV listing

TORONTO, June 18, 2018 – Flow Capital Corp. (“Flow Capital” and “Flow”) wishes to congratulate Boardwalktech Software Corp. (“Boardwalktech”) on its successful TSX Venture Exchange (“TSXV”) listing.  Boardwalktech, one of Flow Capital’s portfolio companies, commenced trading on the TSXV on June 11, 2018 under the ticker symbol BWLK.

“Our relationship with Boardwalktech is representative of the value proposition that we offer our portfolio companies and syndicate partners.  In addition to investing capital, we invest our time and our expertise in order to help build portfolio company value,” stated Robb McLarty, Acting Chief Executive Officer of Flow.  “We will continue to execute on opportunities like Boardwalktech, from both the United States and Canada, in order to continue to fulfill our mission of building shareholder value.”

About Flow Capital

Based in Toronto, Flow Capital Corp. is a diversified alternative asset investor and advisor, operating two divisions: an investment operation providing revenue-linked capital to emerging growth businesses, and an institutional advisory sales platform providing pension funds, charities and endowment clients with access to leading institutional money managers from around the world.

For further information, please contact:

Flow Capital Corp.

Robb McLarty
Chief Executive Officer (Acting)
robb@flowcap.com

Phone: (416) 777-0383

1 Adelaide Street East, Suite 3002,

Toronto, Ontario M5C 2V9