Think Research has entered into a credit agreement with Beedie Investments, allowing the healthtech firm to receive up to $25 million in a non-revolving term convertible loan facility.
Think Research recently started trading on OTCQB Venture Market in the United States under the symbol “THKKF.”
With an initial advance of $10 million, Think Research plans to use the proceeds for future acquisitions, organic growth investments, and general working capital purposes. The remaining $15 million will be made available for subsequent advances in minimum tranches of $3 million, which Think Research said will be used to finance the acquisitions of complementary businesses or assets by the company.
According to Sachin Aggarwal, CEO of Think Research, the funding will also provide the company with financial flexibility to continue to grow its services and solutions, as well as to expand its footprint.
Founded in 2006, Toronto-based Think Research is an acquisitive healthcare software company that develops tools and content for clinicians. The firm has been active in its acquisition strategy in the last couple of years, backed by numerous moves to expand and switch credit facilities.
After going public on the TSX Venture Exchange (TSXV) in December 2020 via a reverse takeover, Think Research acquired Pharmapod, Biopharma Services, MDBriefCase, Clinic 360, and HealthCarePlus Group of Clinics.
Think Research recently started trading on OTCQB Venture Market in the United States under the symbol “THKKF,” as it continues to trade on the TSXV using the ticker “THNK.”
In its OTCQB debut, Think Research’s stock was priced at $0.84, which isn’t far off from the company’s current stock price at the TSXV, which sits at $0.94 at the time of publication. Think Research saw its stock price reach an all time high on the TSXV in December 2020, when it reached $4.66.
For its 2021 third quarterly earnings report, Think Research achieved a record revenue of $10.1 million CAD, an increase of 153 percent compared to the same period in the previous year. However, the company also said that its Q3 2021 results were negatively affected by the effects of COVID-19, impacting its revenue, gross profit, and earnings before interest, taxes, depreciation, and amortization (EBITDA).
“Some revenue trajectories were negatively affected due to patient cancellations and no-shows for clinical procedures and studies,” Think Research said. “In particular, this impacted BioPharma which derives its revenue from research studies that require minimum patient enrollment.”
Executive vice president Mark Sakamoto told BetaKit that the recent credit agreement with Beedie is in addition to its credit facility with Scotiabank, and was negotiated in partnership between Scotiabank and Beedie.
Last year, Think Research replaced its existing credit arrangement with the National Bank of Canada (NBC), choosing instead to go with the Bank of Nova Scotia. In this move, Think Research was able to get more credit availability with lower interest rates. The company was able to get up to $22 million in its 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.
This bank switch-up followed Think Research increasing its credit facility with the NBC last June, providing the company with a $15 million revolving credit facility and a $10 million revolving acquisition facility for a total availability of up to $25 million.
Featured image by Think Research