VIQ Solutions Inc. (“VIQ”, “VIQ Solutions” or the
“Company”) (TSX: VQS), a global provider of secure,
AI-driven, digital voice and video capture technology and
transcription services, today announces that it has entered into a
US$1,500,000 term loan (the “Term Loan”) with Beedie
Investments Ltd. (the “Lender”). An initial amount of
US$500,000 has been advanced to the Company under the Term Loan as
of the date hereof, while the remaining US$1,000,000 will be
available to be drawn by the Company in tranches of US$500,000,
subject to Lender approval. Any undrawn amounts under the Term Loan
shall be subject to a standby fee of 1.5% per annum. The Term Loan
will bear an interest rate of 14%, comprised of cash interest of 7%
per annum and paid-in-kind interest charged at a rate of 7% per
annum, compounded monthly and added to the outstanding principal
amount of the Term Loan. The Term Loan has a maturity date of
January 13, 2027. The Company intends to use the amounts advanced
pursuant to the Term Loan for general corporate and working capital
purposes.
In connection with entering into the Term Loan, the Company and
the Lender entered into a fourth amendment agreement (the
“Fourth Amendment Agreement”) in order to amend certain
terms of the credit agreement dated January 13, 2023 between the
Company and the Lender, as amended, (the “Credit Agreement”)
governing the Company’s US$15,000,000 senior secured loan with the
Lender (the “Original Loan”). Pursuant to the terms of the
Fourth Amendment Agreement, and effective as of the date of the
Fourth Amendment Agreement, the interest rate on the Original Loan
was increased by 1.25% to 15.75%, comprised of cash interest of
9.5% per annum and paid-in-kind interest charged at a rate of 6.25%
per annum, compounded monthly and added to the outstanding
principal amount of the Original Loan. Additionally, the Fourth
Amendment Agreement amended the prepayment fee under the Credit
Agreement such that, among other things, a prepayment fee equal to
the accrued and unpaid interest on the prepayment amount up to the
date of prepayment plus the greater of: (i) 3% of the prepayment
amount, and (ii) the accrued and unpaid interest on the prepayment
amount from the date of prepayment to March 13, 2026, applies to
any voluntary prepayment of the Original Loan occurring on or
before March 13, 2026.
The Lender is a “related party” of the Company as such term is
defined under applicable securities laws and, as a result, the
entering into the Term Loan is considered a related party
transaction (as defined under Multilateral Instrument 61-101
Protection of Minority Security Holders in Special Transactions
(“MI 61-101”)). The Company has relied on certain exemptions
from the requirement to obtain a formal valuation and minority
shareholder approval, namely sections 5.5(a) and 5.7(1)(a) of MI
61-101, as neither the fair market value of the subject matter of,
nor the fair market value of the consideration for the Term Loan
exceeds 25% of the Company's market capitalization.
A copy of the Credit Agreement is available, and a copy of the
Fourth Amendment Agreement will be available, under the Company’s
profile on SEDAR+ at www.sedarplus.ca.
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
(collectively, “forward-looking statements”) 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 (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 in this press release
include but are not limited to statements with respect to the use
of the amounts advanced to the Company under the Term Loan.
Forward-looking statements are based on several factors and
assumptions which have been used to develop such statements, 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.
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 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 statements, including
but not limited to the factors described in greater detail in the
“Risk Factors” section of the Company’s annual information form and
in the Company’s other materials filed on SEDAR+ at
www.sedarplus.ca.
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. Such estimates and assumptions may
prove to be incorrect or overstated. 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 such 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/20241104868551/en/
Jacob Manning VIQ Solutions Email:
marketing@viqsolutions.com
VIQ Solutions (TSX:VQS)
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