Hamilton Thorne Announces the Increase of Its Bank Lines of Credit to US$12.5 Million
July 27 2021 - 8:00AM
Hamilton Thorne Ltd. (TSX-V:HTL), a leading provider of precision
instruments, consumables, software, and services to the Assisted
Reproductive Technologies (ART), research, and cell biology
markets, today reported that it has converted the recent US$5
million drawdown under its acquisition line of credit to support
the acquisition of IVFtech to a 5-year, fixed rate term note. In
addition, its bank has agreed to renew and expand its acquisition
line of credit to US$8 million to support growth and future
acquisitions, and to extend its US$4.5 million bank operating line
of credit for an additional year to July 2023.
Highlights
- Conversion of acquisition line of credit drawdown to a 5-year,
fixed rate term note effective July 23:
- Interest rate fixed at 3.32% per annum for the life of the
loan
- Amortizing loan with fixed monthly principal payments of
US$83.3 thousand plus interest
- Operating line of credit provides for advances up to US$4.5
million
- Existing line extended to July 31, 2023, with annual renewals
for additional one-year periods
- Interest at prime rate
- No periodic paydowns required
- Bank advances based on borrowing base (eligible accounts
receivable and inventory)
- Acquisition line of credit provides for advances up to US$8.0
million
- Line increased from previous US$5 million
- Interest at prime rate
- Requires conversion to five year, fixed-rate term loans when
balance exceeds US$1 million
- Bank advances up to 55% of target acquisition purchase
price
Michael Bruns, Chief Financial Officer stated, “We are extremely
pleased that our senior lender continues to support Hamilton Thorne
with this increased credit facility. These US$12.5 million total
lines of credit provide us with operating flexibility to support
our growth, and, in combination with the over US$19 million of cash
on our balance sheet, allows us to continue to execute our
acquisition program with a low cost of capital, while staying well
within our current comfort level of debt.”
About Hamilton Thorne Ltd.
(www.hamiltonthorne.ltd)
Hamilton Thorne is a leading global provider of precision
instruments, consumables, software and services that reduce cost,
increase productivity, improve results and enable breakthroughs in
Assisted Reproductive Technologies (ART), research, and cell
biology markets. Hamilton Thorne markets its products and services
under the Hamilton Thorne, Gynemed, Planer, IVFtech, Embryotech
Laboratories, and Tek-Event brands, through its growing sales force
and distributors worldwide. Hamilton Thorne’s customer base
consists of fertility clinics, university research centers, animal
breeding facilities, pharmaceutical companies, biotechnology
companies, and other commercial and academic research
establishments.
Neither the TSX Venture Exchange, nor its regulation services
provider (as that term is defined in the policies of the exchange),
accepts responsibility for the adequacy or accuracy of this
release.
Certain information in this press release may contain
forward-looking statements, including, without limitation, with
respect to the projected impact of the transaction on the Company's
revenue and future earnings. This information is based on current
expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might
differ materially from results suggested in any forward-looking
statements. The Company assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward-looking
statements unless and until required by securities laws applicable
to the Company. Additional information identifying risks and
uncertainties is contained in filings by the Company with the
Canadian securities regulators, which filings are available at
www.sedar.com.
For more information, please contact:
David Wolf, President & CEO
Hamilton Thorne Ltd. 978-921-2050ir@hamiltonthorne.ltd |
Michael Bruns, CFOHamilton Thorne
Ltd. 978-921-2050ir@hamiltonthorne.ltd |
Glen AkselrodBristol Investor
Relations416-737-4467glen@bristolir.com |
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