- Think (THNK) has signed a credit agreement with Beedie Capital for up to C$25M
- The non-revolving, four-year convertible loan facility includes an initial advance of $10M
- The facility bears interest at 8.50 per cent per annum on advanced funds with a yearly 1.25-per-cent fee on the unadvanced portion
- The agreement will see Beedie provide a nominee to Think’s board if its ownership position reaches 15 per cent
- The companies expect the closing date and funding of the initial advance to take place in early May
- Think Research offers knowledge-based digital health care software solutions
- Think (THNK) is down by 2.5 per cent trading at $0.78 per share
Think (THNK) has signed a credit agreement with Beedie Capital for up to C$25M.
Beedie Capital is a multi-strategy investment platform that manages alternative investments and assets for Beedie, one of the largest private companies in B.C.
The non-revolving, four-year convertible loan facility includes an initial advance of $10M, with the remaining $15M available for subsequent advances in minimum tranches of $3M.
The facility bears interest at 8.50 per cent per annum on advanced funds with a yearly 1.25-per-cent fee on the unadvanced portion.
Think will use the initial advance for acquisitions, organic growth investments and general working capital. It will use subsequent advances for complementary assets and acquisitions.
The loan is secured by a general security agreement over Think’s assets.
Beedie may elect to convert the principal amount of the initial advance into Think common shares priced at $1.443.
Subject to the approval of the TSXV, the principal amount of any subsequent advance will be convertible into Think common shares priced at the higher of (i) the market price of the shares, less the maximum permitted discount under applicable stock exchange rules, or (ii) a 25-per-cent premium above the shares’ 20-trading-day VWAP.
Think may require Beedie to convert up to 50 per cent of the principal amount of the initial advance or subsequent advances if THNK common shares’ 20-trading-day VWAP equals or exceeds a 50-per-cent premium to the given conversion price.
Should Beedie own at least 15 per cent of Think’s issued and outstanding common shares, it may nominate a representative to Think’s board as long as it maintains its allocation.
The companies expect the closing date and funding of the initial advance to take place in early May.
“We are excited to have entered into this credit facility with Beedie Capital,” said Sachin Aggarwal, CEO of Think Research. “We look forward to having Beedie Capital as a strategic partner supporting our momentum as we execute on our strategy to become an essential data service for clinicians everywhere in the markets we serve.”
Think Research offers knowledge-based digital health care software solutions.
Think (THNK) is down by 2.5 per cent trading at $0.78 per share as of 2:10 pm EST.