VIQ Solutions Inc. ("VIQ", "VIQ Solutions" or the
"Company") (TSX and Nasdaq: VQS), a global provider of
secure, AI-driven, digital voice and video capture technology and
transcription services, today announces that the Company has drawn
a subsequent advance of US$1 million (the "Subsequent
Advance") under the Company’s previously announced senior
secured loan (the "Loan") of up to US$15 million with Beedie
Investments Ltd. (the "Lender") pursuant to the terms of a
credit agreement by and among the Company and the Lender (the
"Credit Agreement"). As of the date hereof, US$13 million of
the Loan has been advanced to the Company. The Company intends to
use the Subsequent Advance primarily for a restructuring plan
expected to yield between US$2M and US$2.5M in reduced expenses
over the next 12 months.
“As we accelerate the expansion of our global AI generated
workflow technologies, much like we announced in 2022, the
integration of our acquisitions and migrations of our client base
to our technology, drive cost reductions that result in savings to
the company,” continued Susan Sumner. “Not only is the migration to
aiAssist™ delivering higher productivity, but it also creates
significant workflow improvements that drive greater efficiency
throughout the entire organization, from production operations to
finance, without compromising our client commitments. Every day we
are proving that the model we set out to deliver to change this
industry is in fact playing out as planned. While COVID-19 and the
tumultuous economic conditions of the past two years brought many
challenges to the Company, we now see the fruits of the investment
and continued development of NetScribe™, powered by aiAssist™.”
Terms of the Credit Agreement and Warrant Issuance The
principal amount outstanding under the Loan bears interest at 12.5%
per annum, comprised of cash interest of 9.5% per annum, calculated
and paid monthly, and paid-in-kind interest charged at a rate of
3.0% per annum, compounded monthly and added to the outstanding
principal amount of the Loan. A standby fee is charged monthly at a
rate of 1.5% per annum on the undrawn amount of the standby
facility.
In connection with the Subsequent Advance, the Company has
issued 497,423 common share purchase warrants (each, a
"Warrant") to the Lender. Each Warrant is exercisable to
purchase one common share of the Company (each, a "Warrant
Share") at an exercise price of CDN$0.45 per Warrant Share. The
Warrants expire on July 25, 2030.
The Loan is secured against all of the assets and property of
the Company and certain subsidiaries pursuant to a general security
agreement.
SenaHill served as exclusive financial advisor for VIQ Solutions
in connection with the Loan and Dentons Canada, LLP acted as legal
advisor.
A copy of the Credit Agreement is available under the Company's
profile on SEDAR at www.sedar.com.
No securities regulatory authority has either approved or
disapproved of the contents of this press release. This press
release is for information purposes only and shall not constitute
an offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of these securities in any state or jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any
such state or jurisdiction.
For more information about VIQ, please visit
viqsolutions.com.
About VIQ Solutions
VIQ Solutions is a global provider of secure, AI-driven, digital
voice and video capture technology and transcription services. VIQ
offers a seamless, comprehensive solution suite that delivers
intelligent automation, enhanced with human review, to drive
transformation in the way content is captured, secured, and
repurposed into actionable information. The cyber-secure, AI
technology and services platform are implemented in the most rigid
security environments including criminal justice, legal, insurance,
government, corporate finance, media, and transcription service
provider markets, enabling them to improve the quality and
accessibility of evidence, to easily identify predictive insights
and to achieve digital transformation faster and at a lower
cost.
Forward-Looking Statements Certain statements included in
this news release constitute forward-looking statements or
forward-looking information ("forward-looking statements") under
applicable securities legislation. Such forward-looking statements
are provided for the purpose of providing information about
management's current expectations and plans relating to the future.
Readers are cautioned that reliance on such information may not be
appropriate for other purposes.
Forward-looking statements typically contain statements with
words such as "anticipate", "believe", "expect", "plan", "intend",
"estimate", "propose", "project" or similar words suggesting future
outcomes or statements regarding an outlook. Forward-looking
statements in this news release include, but are not limited to,
those statements with respect to the intended use of proceeds and
the expected cost savings associated with the VIQ’s restructuring
plan. Forward-looking statements are based on several factors and
assumptions which have been used to develop such statements and
information, but which may prove to be incorrect. Although VIQ
believes that the expectations reflected in such forward-looking
statements are reasonable, undue reliance should not be placed on
forward-looking statements because VIQ can give no assurance that
such expectations will prove to be correct. In addition to other
factors and assumptions which may be identified in this news
release, assumptions have been made regarding, among other things,
the Company’s business plans and goals. Readers are cautioned that
the foregoing list is not exhaustive of all factors and assumptions
that have been used.
Forward-looking statements are necessarily based on a number of
opinions, assumptions and estimates that, while considered
reasonable by the Company as of the date of this news release, are
subject to known and unknown risks, uncertainties, assumptions and
other factors that may cause the actual results, level of activity,
performance or achievements to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to the factors described in greater detail in the
"Risk Factors" section of the Company’s annual report for the year
ended December 31, 2022 and in the Company’s other materials filed
with the Canadian securities regulatory authorities and the U.S.
Securities and Exchange Commission from time to time, available at
www.sedar.com and www.sec.gov, respectively. These factors are not
intended to represent a complete list of the factors that could
affect the Company; however, these factors should be considered
carefully. There can be no assurance that such estimates and
assumptions will prove to be correct. The forward-looking
statements contained in this news release are made as of the date
of this news release, and the Company expressly disclaims any
obligation to update or alter any forward-looking statements, or
the factors or assumptions underlying them, whether as a result of
new information, future events or otherwise, except as required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20230727647145/en/
For additional information:
Media: Laura Haggard Chief Marketing Officer VIQ
Solutions Inc. Phone: (800) 263-9947 Email:
marketing@viqsolutions.com
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