Flow Capital announces cumulative investment performance over 6 years

26.4% IRR since inception; $67.6 million deployed

TORONTO, ON, June 12, 2024 (GLOBE NEWSWIRE) — Flow Capital Corp (TSXV: FW) (“Flow Capital” or “Flow”) has been reporting on its investment performance since the Company’s inception six years ago.

Highlights:

• Annual IRR of 26.4% at portfolio level since inception (March 2018 to March 2024)

• A total of $67.6 million invested in 22 portfolio companies

• Book value per share of $1.23, compared to $0.45 in 2019

Since March 2018, following the merger of two previous companies, Flow has focused exclusively on the subprime growth segment of the subprime debt market, a $40 billion annual market in North America. Flow provides loans to high-growth companies, primarily in the technology sector. Our loans enable entrepreneurs to grow their businesses while avoiding or delaying a costly and dilutive equity issue.

Investment performance since March 2018¹

1. The data in the table above covers the period of new investments from March 2018 and includes all payments, fees and stock gains through April 2024.

2. Includes warrants, shares and share-like bonuses. Warrant values ​​are calculated using the Black-Scholes pricing model. See the financial statements and MD&A of Flow Capital for the period ended March 31, 2024.

As a result of the portfolio’s strong returns and profitability, Flow saw its book value per share increase from $0.45 as of December 31, 2019 to $1.23 as of March 31, 2024. This represents a compound annual growth rate of 27%. over the last four years. and a quarter year, significantly outperforming the TSX Small Cap Index. “Since March 2018, we have focused on generating shareholder returns by increasing book value per share,” said Alex Baluta, CEO of Flow Capital. “In the same way that Warren Buffett tracks Berkshire Hathaway’s book value per share growth, we have included a chart showing our book value performance over 4 1/4 years.”

Book value per share since December 2019

3. Consistent historical and projected profitability allowed the recognition of a deferred tax asset of $7.9 million which increased BVPS by $0.25.
4. Dilution resulting from the exercise of outstanding warrants and options decreased BVPS by $0.08.

The story continues

“We are proud of the success of our portfolio companies over the past six years. By focusing on senior secured loans to high-growth companies, we have generated significant value for our shareholders, while providing an attractive yield and income stream to our debenture holders, who today earn a return of between 10.25% and 11.33% (depending on the currency of the unit). and class). Looking ahead, as stock markets rebound, we remain optimistic about our growth potential over the next five years,” said Alex Baluta, CEO of Flow.

“And, as I always like to point out, we do not manage a portfolio of stocks, but a portfolio of secured debt, with upside potential for stocks. I believe our market orientation and business model allows us to achieve equity-like returns – or better, but with similar risk to secured debt,” Baluta continued. “We encourage investors to review our financial statements and MD&A in detail and then contact us with any questions.”

About the feed Capital

Flow Capital Corp. is a Canada-based, publicly traded subprime debt lender. Since 2018, we have been financing high-growth companies in the US, UK and Canada. We help businesses accelerate their growth without the dilutive effect of a capital increase or the difficulties associated with traditional lenders, such as banks. We specialize in venture-backed, founder-owned, revenue-generating companies seeking $3 million to $7 million in capital to fund continued growth. To learn more about us, visit www.flowcap.com.

For more information, please contact:

Flow Capital Corp.
Alex Baluta
General manager
[email protected]

47, rue Colborne, suite 303,
Toronto, Ontario M5E 1P8,

Forward-looking information and statements

Certain statements contained herein may be “forward-looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Flow or the industry to be materially different from those contained herein. expressed future results, performance or achievements. or implied by these forward-looking statements. Forward-looking statements involve significant risks and uncertainties and should not be construed as guarantees of future performance or results and will not necessarily constitute accurate guidance as to whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Flow undertakes no obligation, except as required by law, to update the forward-looking statements to reflect new events or circumstances.