Think Research closes initial advance of $10 million from Beedie Investments under non-revolving term convertible loan facility

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Think Research Corp said it has closed an initial advance of $10 million from Beedie Investments Ltd (Beedie Capital) under the company’s non-revolving term convertible loan facility of up to the principal amount of $25 million. 

Under the terms of the credit agreement between Think and Beedie Capital dated April 22, 2022, the firm may use the proceeds of the initial advance to fund future acquisitions, organic growth investments, and for general working capital purposes. 

The undrawn $15 million of the convertible facility will be available for subsequent advances in minimum tranches of $3 million over the term of the convertible facility, with such advances to be used to finance Think’s acquisition of complementary businesses or assets.

In a statement, Sachin Aggarwal, CEO of Think Research said: “We are pleased to have a funding partner with the pedigree of Beedie Capital. The immediate capital injection of $10 million from Beedie provides us with the balance sheet strength and flexibility to continue to execute our aggressive strategic plans as we aim for operating profitability while becoming an essential data service to clinicians everywhere in the markets that we serve.”

READ: Canaccord Genuity repeats ‘Speculative Buy’ rating on Think Research stock following recent Q4 results

The convertible facility bears interest at a rate of 8.50% per annum on advanced funds and carries a standby fee equal to 1.25% per annum on the unadvanced portion of the convertible facility. 

Subject to the terms of the credit agreement, the convertible facility, including all subsequent advances, will have a term of four years from the closing date of the initial advance and may be prepaid, subject to certain conditions including the payment of applicable prepayment fees. 

At any time during the term of the convertible facility, Beedie Capital may elect to convert the principal amount of the initial advance into common shares of Think at a conversion price of $1.443 per common share, subject to the terms of the credit agreement. common shares issued on conversion of the initial advance will be subject to a four-month and one-day statutory resale restriction in accordance with applicable Canadian securities laws, which will expire on September 11, 2022.

The convertible facility is secured by a general security agreement over the assets of the company and certain of the company’s subsidiaries, among other security granted to Beedie Capital, and contains customary covenants for a secured credit facility of this type.

In connection with the convertible facility, on the closing date the company paid a cash commission of $570,000 to and issued 309,278 non-transferable compensation options to Origin Merchant Securities Inc. Each compensation option entitles the holder to purchase one common share at a price of $1.443 for a period of two years from the closing date. The compensation options and any common shares issued on exercise of the compensation options are subject to a four-month and one-day statutory resale restriction in accordance with applicable Canadian securities laws, which will expire on September 11, 2022.

Beedie Capital is a multi-strategy direct investment platform that manages the alternative investments and assets for Beedie, one of the largest private companies in British Columbia. It deploys capital using a flexible, evergreen mandate, and applies a highly agnostic approach to the duration, structure and size of its investments. The firm Beedie Capital provides its partners the time to deliver on their strategic plans, while providing capital in the right structure to optimize cost of capital and shareholder return.

Beedie Capital invests in any sector, with a core focus on Technology, Tech-enabled Services, and Metals and Mining, and seeks to grow its invested capital alongside the enterprise value of its investments.

Think Research is an industry leader in delivering knowledge-based digital healthcare software solutions. The company’s focused mission is to organize the world’s health knowledge so everyone gets the best care. Its evidence-based healthcare technology solutions support the clinical decision-making process, standardize care, and improve patient outcomes. 

For over a decade, Think’s cloud-based, EMR-agnostic digital tools have empowered clinicians around the world and positively impacted millions of patients across the continuum of care – including primary physician care, acute care hospitals and surgical suites as well as community and seniors’ care. 

Think serves as a trusted health system partner to a rapidly growing, global client base that spans five continents across more than 13,000 healthcare facilities, with a clinical audience of over 300,000 doctors, nurses and pharmacists.

Contact the author at jon.hopkins@proactiveinvestors.com