Think Research switches banks, increases credit facility to $28 million

Healthtech

Think Research Corporation replaced its existing credit arrangement with the National Bank of Canada, choosing instead to go with the Bank of Nova Scotia (BNS).

The new arrangement increases the size of Think Research’s total credit facility and credit availability while lowering interest on the loan, the Toronto-based healthtech announced on September 13.

Founded in 2006, Think Research is an acquisitive healthcare software firm that develops tools and content for clinicians.
 

The new credit agreement provides a $22 million revolving credit facility, a $6 million revolving acquisition facility, and a $10 million uncommitted accordion that can be allocated to either facility at Think Research’s discretion. An accordion allows a company to increase its existing lines of credit.

The credit agreement between BNS and Think Research is for two years with an option to extend it for an additional year.

In June, Think Research amended an existing credit agreement with the National Bank that gave the company a $15 million revolving credit facility and a $10 million revolving acquisition facility for a total availability of up to $25 million.

Founded in 2006, Think Research is an acquisitive healthcare software firm that develops tools and content for clinicians.

The change in credit lenders came after Think Research posted its second-quarter 2021 results, showing record revenue of $10.2 million CAD in Q2 2021, an increase of 167 percent over the same period in the previous year. The healthtech company’s adjusted EBITDA for the quarter showed a loss of $1.3 million CAD compared to a $1.9 million CAD loss for the same period in 2020.

The Toronto-based firm also noted that net income showed a loss of $5.6 million CAD compared to a $3.1 million CAD loss for the same period in 2020. Think Research chalked the loss up to higher expenses related to acquisitions, and for support for continued business growth.

At the same time the company announced its new line of credit, it also noted that it closed its previously announced deal to acquire fellow Toronto-based health company BioPharma Services for approximately $44.6 million in cash and equity, plus an annual earnout. BioPharma Services is a contract research organization (CRO) focused on early-stage clinical research.

“The closing of this acquisition offers not just immediate financial value to our shareholders, but it also represents a key pillar in our knowledge lifecycle, allowing us to utilize systems and solutions that support the clinical decision-making process, standardize care, and, ultimately, improve patient outcomes,” Think Research CEO Sachin Aggarwal said. “We look forward to supporting BioPharma in its digital transformation to create synergies in the near term.”

Charles Mandel

Charles Mandel

Charles Mandel's reporting and writing on technology has appeared in Wired.com, Canadian Business, Report on Business Magazine, Canada's National Observer, The Globe and Mail, and the National Post, among many others. He lives off-grid in Nova Scotia.