• Proceeds will be used for general and working capital purposes
  • Certain loan covenant breaches have been waived by lenders

TORONTO, January 18, 2024 – Think Research Corporation (TSXV: THNK) (“TRC” or the “Company“), a company focused on transforming healthcare through digital health software solutions, is pleased to announce that it has entered into an agreement today in respect of a $1 million convertible subsequent advance (the “Advance“) from Beedie Investments Ltd. (“Beedie Capital“), pursuant to its existing credit agreement with Beedie Capital dated as of April 22, 2022 (as amended, the “Credit Agreement“). Think intends to use the proceeds of the Advance for general and working capital purposes. The Advance forms part of the $25 million convertible facility with Beedie Capital that was previously announced on April 25, 2022.

The Advance is provided pursuant to the Credit Agreement and a seventh amendment agreement (“Seventh Amendment”) thereto, which sets out the terms and conditions of such Advance as follows:

  • The Advance will be drawn on the date that the conditions precedent under Seventh Amendment are satisfied (the “Subsequent Advance Closing Date“), which conditions include conditional approval of the TSX Venture Exchange (the “TSXV“).
  • The Advance shall bear interest at 8% per annum in cash interest, with a 3.5% per annum compounded monthly in arrears component that is added to the outstanding principal amount of the Advance, for a total interest rate of 11.5% per annum for the period commencing on the Subsequent Advance Closing Date;
  • A commitment fee of $20,000 shall be payable by Think to Beedie Capital (the “Commitment Fee“), which fee shall be deducted from the Advance and retained by Beedie Capital.
  • At any time during the term of the Credit Agreement, Beedie Capital may elect to convert the initial principal amount of the Advance into common shares of the Company (the “Common Shares“) at a conversion price of $0.35 (the “Subsequent Advance Conversion Price“. The Subsequent Advance Conversion Price represents a 35% premium above the 20 trading day volume-weighted average price of the Common Shares on the TSXV.
  • The maturity date of the Advance will be May 10, 2026.

The Subsequent Advance Closing Date and funding of the Advance is expected to take place in the coming days subject to the satisfaction of customary closing conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSXV.

Common Shares issued on conversion of the Advance will be subject to a statutory resale restriction in accordance with applicable Canadian securities laws, expiring four months and one day from the date of the applicable advance, in addition to such other restrictions as may apply under the policies of the TSXV.

Related Party Transaction

Beedie Capital is a “related party” of the Company as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“), and the amendments would constitute a “related party transaction” as defined in MI 61-101 and within the meaning of TSXV Policy 5.9. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and (b) and 5.7(1)(a) of MI 61-101.

About Think Research Corporation

Think Research Corporation 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 and standardization of care to facilitate better health care outcomes. The Company gathers, develops, and delivers knowledge-based solutions globally to customers including enterprise clients, hospitals, health regions, healthcare professionals, and / or governments. The Company has gathered a significant amount of data by building its repository of knowledge through its network and group of companies.

Think licenses its solutions to over 14,200 facilities for over 320,000 primary care, acute care, and long-term care doctors, nurses and pharmacists that rely on the content and data provided by Think to support their practices. Millions of patients and residents annually receive better care due to the essential data that Think produces, manages and delivers.In addition, the Company collects and manages pharmaceutical and clinical trial data via its BioPharma Services subsidiary. BioPharma Services is a leading provider of bioequivalence and Phase 1 clinical research services to pharmaceutical companies globally. Think’s other services include a network of digital-first primary care clinics and medical clinics that provide elective surgery. Visit www.thinkresearch.com

For more information: https://www.thinkresearch.com/ca/investors/

For further information: Mark Sakamoto, Executive Vice President, Think Research Corporation,
Direct: 416.388.7119, mark.sakamoto@thinkresearch.com