Think Research Announces Increased Credit Facility
- Revolving credit facility increased from $10 million to $15 million for working capital and general corporate requirements
- New $10 million revolving acquisition facility
- Total credit facility size increased from $10 million to $25 million
TORONTO, June 28, 2021 /CNW/ - Think Research Corporation (TSXV: THNK) ("THINK" or the "Company"), a company focused on transforming healthcare through digital health software solutions, is pleased to announce that it has entered into an amended credit agreement (the "Credit Agreement") with National Bank of Canada ("NBC" or the "Lender") that provides for a $15 million revolving credit facility and a $10 million revolving acquisition facility for an aggregate total availability of up to $25 million.
The Company will use the proceeds from the Credit Agreement for general corporate purposes and acquisitions.
THINK Research CEO, Sachin Aggarwal, said, "We are grateful for the ongoing support we have received from NBC for the past four years. We believe this support reflects NBC's ongoing confidence in THINK's growth and our ability to execute on future acquisitions that are highly synergistic and accretive."
NBC's Senior Director of Technology and Innovation Banking, David Looi, said "NBC is committed to supporting technology companies from coast-to-coast through their entire life cycle and is pleased to provide growth capital to help companies grow to the next level. We're excited to continue supporting THINK on its quest to be a global industry leader in digital health solutions."
The new Credit Agreement will provide a line of credit with a sliding-scale based interest rate relative to the Company's leverage ratio. The maturity date for the Credit Agreement is June 25, 2024. By having a committed three-year Credit Agreement, bank debt outstanding shifts from current liabilities to long term liabilities, the impact of which would be $9 million as at March 31, 2021. This also strengthens the Company's working capital position.
Borrowings under the facility are secured by a first charge over substantially all of the Company's assets. The new Credit Agreement contains customary representations and warranties, positive and negative covenants, and events of default.
About Think Research Corporation
Think Research is an industry leader in delivering knowledge-based digital health 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 Research'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 Research is proud to serve as a trusted health system partner to a rapidly growing, global client base that spans five continents and more than 2,800 healthcare facilities.
Caution Regarding Forward Looking Information
Certain statements in this news release, other than statements of historical fact, contain "forward-looking information" within the meaning of Canadian securities laws and are based on certain assumptions and reflect the Company's current expectations with respect to such matters. Forward-looking statements are provided for the purposes of assisting the reader in understanding the Company and its business, operations, prospects and risks at a point in time in the context of historical and possible future developments and the reader is cautioned that such statements may not be appropriate for other purposes. Statements containing forward-looking information are not historical facts, but instead represent management expectations, estimates and projections regarding future events or circumstances. Such forward-looking information is necessarily based on a number of opinions, estimates and assumptions, including but not limited to those assumptions described under the heading "Caution Regarding Forward Looking Information" in the Company's Management's Discussion & Analysis for the Three months ended March 31, 2021. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, competitive strengths and outlook of the Company, and include statements concerning accelerating growth in 2021 and beyond, expectations for continuing to build out high quality, recurring software revenues from top-tier health system clients and continuing to acquire and integrate additional companies, and the statements made in the "First Quarter Fiscal 2021 Update". Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts", "committed" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could".
By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which are beyond the Company's control, affect the operations, performance and results of the Company, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, fluctuations in interest rates, inflation and foreign exchange rates, monetary policies, business investment and the health of local and global equity and capital markets, changes in technology, management of market liquidity and funding risks, risks associated with financial instruments, changes in accounting policies and methods used to report financial condition (including uncertainties associated with significant judgments, estimates and assumptions), reliance on third party services, the effect of applying future accounting changes, privacy and confidentiality risks, product and service defects, medical liability claims, business competition, operational and reputational risks, technological changes, cybersecurity risks, changes in government regulation and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, man-made disasters, terrorist attacks, wars and other conflicts, or an outbreak of a public health pandemic or other public health crises (such as COVID-19), the Company's ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, and the Company's success in anticipating and managing the foregoing factors.
The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances and that the list of factors in the previous paragraph, collectively, are not expected to have a material impact on the Company. While the Company considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect.
Other than as specifically required by applicable Canadian law, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
Additional information about the risks and uncertainties of the Company's business and material factors or assumptions on which information contained in forward–looking statements is based is provided in its disclosure materials, including the Company's most recently filed annual information form and any subsequently-filed interim MD&A, which are available under our profile on SEDAR at www.sedar.com.
SOURCE Think Research Corporation
Genevieve Tomney, VP, Communications & Investor Relations, Think Research Corporation, Direct: 416.460.5784, [email protected]
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