VIQ Solutions Announces Delisting from Nasdaq and Director Resignation
September 27 2023 - 5:30PM
Business Wire
VIQ Solutions Inc. (“VIQ” or the “Company”) (TSX and Nasdaq:
VQS), a global provider of secure, AI-driven, digital voice and
video capture technology and transcription services, today
announced that pursuant to its press release of September 30, 2022
announcing receipt of the initial notice of deficiency from the
Listing Qualifications Department of the Nasdaq Stock Market LLC
(“Nasdaq”), the Company received a final delisting notice from
Nasdaq on September 26, 2023 due to the continued failure to
satisfy the $1.00 minimum bid price listing requirement in Nasdaq
Listing Rule 5550(a)(2). The Company notified Nasdaq that it would
not appeal Nasdaq’s delisting decision. Nasdaq has notified the
Company that trading of its common shares will be suspended as of
the opening of business on October 5th, 2023. The Company’s common
shares will continue to be listed on the Toronto Stock
Exchange.
After careful consideration, the board of directors of VIQ
determined that it was in the overall best interests of the Company
not to appeal and delist its common shares from Nasdaq. The
decision was made based on several factors, including the board’s
assessment of the probability of the Company regaining and
maintaining compliance with the continued listing requirements
through a reverse stock split, an analysis of the benefits of
continued listing of a dual listing weighed against the onerous
regulatory burden and significant costs and extensive amount of
management’s time, attention and resources expended on regulatory
compliance associated with maintaining continued listing
requirements.
The Company estimates that its annual costs to maintain a dual
listing are approximately $1.3M and are expected to increase
significantly in the coming years due to SOX and ESG compliance and
other requirements. The decision to delist from Nasdaq is
consistent with the Company’s previously announced cost-saving
measures. The Company anticipates that the delisting and cessation
of trading on Nasdaq may have a material adverse effect on the
liquidity and trading price of its common shares.
Nasdaq has informed the Company that it will file a Form 25-NSE
with the Securities and Exchange Commission, which will remove the
Company’s common shares from listing and registration on The Nasdaq
Stock Market.
VIQ also announces today that Harvey Gordon has resigned from
the board of directors of the Company effective September 26, 2023.
The Company wishes him success and is appreciative of his
contributions during his appointment as a director at VIQ.
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 press release constitute
forward-looking statements or forward-looking information under
applicable securities legislation. Such forward-looking statements
or information 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 or information typically contain
statements with words such as "anticipate", "believe", "expect",
"plan", "intend", "estimate", "propose", "project" or similar
words, including negatives thereof, suggesting future outcomes or
that certain events or conditions “may” or “will” occur. These
statements are only predictions. Forward-looking statements or
information in this press release include, but are not limited to
Company’s current focus, the contemplated impact of Nasdaq
delisting and cessation of trading,
Forward-looking statements or information is 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 or information 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 press release, assumptions have been made
regarding, among other things. Readers are cautioned that the
foregoing list is not exhaustive of all factors and assumptions
that have been used.
Forward-looking information is necessarily based on a number of
opinions, assumptions and estimates that while considered
reasonable by the Company as of the date of this press 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 information, included
but not limited to the factors described in greater detail in the
“Risk Factors” section of the Company’s latest annual information
form 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 press release are made
as of the date of this press release and the Company expressly
disclaims any obligations to update or alter statements containing
any forward-looking information, 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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VIQ Solutions Phone: (800) 263-9947 Email:
marketing@viqsolutions.com
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